Additional tax on dividends must be levied in the year of actual distribution, not the year of declaration. The Board clarifies that the additional tax on dividends applies to the excess portion over the prescribed proportion of paid up equity and must be imposed in the year in which the excess distribution is actually made rather than in the year of declaration. Officers are to issue instructions accordingly and carry out a priority review of completed assessments to identify cases where the levy was charged in the year of declaration, reporting results to the Board.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Additional tax on dividends must be levied in the year of actual distribution, not the year of declaration.
The Board clarifies that the additional tax on dividends applies to the excess portion over the prescribed proportion of paid up equity and must be imposed in the year in which the excess distribution is actually made rather than in the year of declaration. Officers are to issue instructions accordingly and carry out a priority review of completed assessments to identify cases where the levy was charged in the year of declaration, reporting results to the Board.
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