A Practical Guide to Dividends and Imputation

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.