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....
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by killer12</i>
<br />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"></font 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,