Taxation of Company's

Question 1

A dividend is:

Answer 1

• A transfer of value by a company to a shareholder or person associated to a shareholder and the cause of transfer is a shareholding in company and no exclusions apply

Question 2

What is a transfer of value?

Answer 2

• A company provides a transfers of money or money’s worth to a person and the person provides nothing in return or the market value of what the company provides is greater than the market value of what the person provides

Question 3

Value of dividend?

Answer 3

• Cash dividend = cash received or value credited to accounr
• Non cash dividednd = value company provided – value person provided
• Value from company – if dividend is not a loan = value as if dividend was a fringe benfit
• If divided is a loan = interest on loan at the FBT prescribed interest rate

Question 4

Imputation credits formula

Answer 4

dividend * 28/72

Question 5

RWT Formula For cash dividend

Answer 5

((Net dividend+IC attached)× 0.33)-IC attached

Question 6

RWT For Non – Cash dividend ((Dividend paid × 0.33)-ICA Attached)/((1-0.33))

Answer 6

((Dividend paid × 0.33)-ICA Attached)/((1-0.33))