I’d like to recommend a brilliant new guide to illegal dividends from tax expert Lee Sharpe.
‘Illegal Dividends and the Pandemic’, which is available as a free download, is a compilation of a series of three articles that were published in the Tax Insider Professional newsletter. Each of the articles covers a different aspect of ‘illegal’ dividends; that is if a company pays dividends it cannot afford. It also covers:
- Why illegal dividends are relevant.
- What makes a ‘legal’ dividend.
- Consequences of an ‘illegal’ distribution.
- What close companies can do if there has been an ‘illegal’ dividend.
- How debt releases work.
- Relevant case studies.
Lee Sharpe is a Chartered Tax Adviser with 20 years’ experience of advising property investors and family businesses on tax matters. He is also an experienced tax writer, and as well as writing for taxationweb.co.uk, is a lead writer for Property Tax Insider (taxinsider.co.uk) and its sister publications, and writes on tax matters for Bloomsbury Professional publications.
You can download the guide at https://tinyurl.com/4o346ste
• Tony Margaritelli, Chair, ICPA