The Volkswagen Case and the Secondary Tax on Companies: Part 2 – The Effect on the Taxation of Dividends with Emphasis on Deemed (Constructive) Dividends

In Part 1 of this article, published in the October Issue of the Bulletin for International Taxation, the author examined the recent South African High Court case of Volkswagen regarding the secondary tax on companies. In Part 2, the author considers the implications of the case for the taxation of dividends in the country and, more generally, deals with the OECD Model Tax Convention's dividend definition as applied to deemed (constructive) dividends.