COMMERCE 4SC3 Lecture Notes - Lecture 5: Dividend Tax, Deferred Tax, Net Income
27 Sep 2018
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Chapter 15: corporate distributions, windings up and s. You cannot sell shares of your company (no body will buy the shares), can only sell the net assets of your company. Individuals sell all their assets for cash, including goodwill. How do you get the cash out in the most tax-efficient basis. And liabilities (paid up capital) and owners equity (capital dividend account and undistributed surplus) What you paid the company when you bought share from the company. Can buy the shares from the company or from another individual. Bob buys shares from bob co for (acb and puc ). Then bob sells shares to lucy for ,000 (lucy acb ,000, Paid up capital represents tax paid money (after tax money) Lucy wants to buy the half the company from bob. Lucy should pay 100,000 because bob"s other half should be worth 100,000 if the whole company is worth 100,000.
