Page 34 - P6 Slide Taxation - Lecture Day 6 - Dividend Tax
P. 34
Loan to s/h
Loan to the holder of a share will be a deemed
dividend in specie if:
Requirements: ≥ 20% of
O Person owes an amount in respect of a debt equity shares
O Person must be a resident and voting
O Person may not be a company rights
O Person must be a connected person of the company OR a
connected person in relation to a connected person of the
company
O Debt must be provided by virtue of a share held in the company
(because the person holds shares in a specific co, he qualifies to
take a loan from the co)
Deemed
dividend in
specie
