In the context of a dual-listed company, where a South African resident shareholder holds shares listed on a South African exchange, it can give instructions to have the share removed from the South African securities registry and placed onto the foreign securities registry. This constitutes an export for exchange control purposes and would require the prior approval of the SARB.
Considering the proposal in the Budget that this be treated as a deemed disposal, the proceeds from such deemed disposal will be capital or revenue in nature, depending on whether it was held as trading stock or a capital asset in the South African resident’s hands.
Essentially, it appears that to prevent the transfer of securities abroad in the dual-listed context, adverse tax consequences will arise, as opposed to adverse Excon consequences, as is the case under the current Excon regime.