Commentary

D7.626 Treatment of dividends, bonuses etc

Corporate tax
Corporate tax | Commentary

D7.626 Treatment of dividends, bonuses etc

Corporate tax | Commentary

D7.626 Treatment of dividends, bonuses etc

Any dividend, bonus or other sum paid by a registered society is not treated as a distribution1. Provided that the:

  1.  

    (a)     payment is payable by reference to the amount of a shareholder's holding in the share capital of the society; and

  2.  

    (b)     society complies with the requirements as to returns (see below), the payment is treated as interest under a loan relationship2. Specifically the legislation states that where shareholdings are held either for the purposes of a trade or for any other purposes, any dividends, bonuses and other sums payable on these shareholdings are

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