Page 34 - Chapters 17 & 18 - Dividends & Dividend Tax
P. 34
Loan To s/h
Loan to the holder of a share will be a deemed
dividend in specie if:
• Requirements:
• Person owes an amount in respect of a debt ≥ 20% of equity
shares and
• Person must be a resident voting rights
• Person may not be a company
• Person must be a connected person of the company OR
a connected person in relation to a connected person
of the company
• 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
