Objective
The objection of Division 7A is to reflect the reality of a situation, rather than the formality. As a matter of form, a dividend paid by a company is one that is declared by the directors of the company and either paid to the shareholders or credited to the shareholders account with the company. However, where a company pays amounts to or for shareholders, not expecting the amounts to be repaid, without formally declaring a dividend, the reality is that the advances are analogous to a dividend. This is the situation that Division 7A seeks to catch.
Read more about this topic: Division 7A Dividend
Famous quotes containing the word objective:
“So much for Mrs. Hollis’ nine months of pain and 20 years of hope.”
—Alvah Bessie, Ranald MacDougall, and Lester Cole. Raoul Walsh. Nameless GI, Objective Burma, cutting dog tags off a dead GI (1945)
“All married couples should learn the art of battle as they should learn the art of making love. Good battle is objective and honest—never vicious or cruel. Good battle is healthy and constructive, and brings to a marriage the principle of equal partnership.”
—Ann Landers (b. 1918)
“Reason is a faculty far larger than mere objective force. When either the political or the scientific discourse announces itself as the voice of reason, it is playing God, and should be spanked and stood in the corner.”
—Ursula K. Le Guin (b. 1929)