accumulated profits

killer12 · 10-19-2009, 09:25 PM

Q Will a loan or advance by a private limited company to its holding company be considered as payment of dividend if the subsidiary possesses sufficient amount of accumulated profits?

Please express your views....

killer12 · 10-20-2009, 06:36 AM

no one replying????? (

faisal_desperado · 10-20-2009, 02:36 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by killer12
 Q Will a loan or advance by a private limited company to its holding company be considered as payment of dividend if the subsidiary possesses sufficient amount of accumulated profits?

Please express your views....
<hr height="1" noshade id="quote"></blockquote id="quote">

Dear,
In company ordinance 1984, there is no such explicit specification.

However, reference, in this regard, may be given from Income Tax Ordinance 2001, according to which, In such a case loan or advance will be treated as dividend.

Exhibit the defination of Dividend, check 19-e thereat.

Regards,