A Practical Guide to Dividends and Imputation provides a concise and easy-to-understand explanation of the dividend and imputation rules. Packed with practical examples high-lighting some of the more difficult areas that practitioners come across.
Topics covered include:
- the concept of a dividend and identifying deemed dividends (such as low interest loans and debt forgiveness)
- issues when paying out a dividend (attaching imputation credits, the benchmark ratio, dividend statements, and the solvency test)
- imputation – together with imputation credit accounts, carrying forward and transferring imputation credits
- RWT, and the new rules for reporting investment income information to Inland Revenue
- issues when paying dividends to non-residents including NRWT and FITC
- avoidance issues such as remuneration paid to relatives and dividend stripping.
Key benefits of the guide include:
- provides readers with practical, day-to-day guidance on tax compliance for dividends
- helps to mitigate the risk of non-compliance and resulting penalties, especially in the area of deemed dividends
- assists with identifying dividend issues in complex tax areas such as liquidations, share repurchases and tax avoidance
- uses practical examples, tables and diagrams to give readers a clear understanding of their tax obligations.
Who should read this guide:
Straightforward and easy-to-use, this book is a valuable working guide to dividends and imputation for accountants and anyone involved in companies in New Zealand whether as shareholders, directors, auditors, or other company advisors.