https://www.taxtmi.com/article/detailed?id=1572 Investing in shares can constitute a business activity, producing business income (including hedging and trading) and rendering shares capital assets for capital gains on sale; acquisition expenses are capital while recurring holding costs are deductible as business expenses. Dividend receipts taxed at the distribution stage form part of total taxable income of the distributing entity, so disallowance rules aimed at non chargeable income do not apply to such taxed dividends, and only narrowly defined dividend-capture acquisitions justify different treatment. en-us Mon, 16 Jan 2012 22:39:52 +0530 Mon, 16 Jan 2012 22:39:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1572 Investing in shares can constitute a business activity, producing business income (including hedging and trading) and rendering shares capital assets for capital gains on sale; acquisition expenses are capital while recurring holding costs are deductible as business expenses. Dividend receipts taxed at the distribution stage form part of total taxable income of the distributing entity, so disallowance rules aimed at non chargeable income do not apply to such taxed dividends, and only narrowly defined dividend-capture acquisitions justify different treatment. Articles Income Tax Mon, 16 Jan 2012 22:39:52 +0530 https://www.taxtmi.com/article/detailed?id=1572