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:
“When you’re dealing with monkeys, you’ve got to expect some wrenches.”
—Alvah Bessie, Ranald MacDougall, and Lester Cole. Raoul Walsh. Captain Nelson, Objective Burma, giving a subaltern a mission (1945)
“So, my sweetheart back home writes to me and wants to know what this gal in Bombay’s got that she hasn’t got. So I just write back to her and says, “Nothin’, honey. Only she’s got it here.””
—Alvah Bessie, Ranald MacDougall, and Lester Cole. Raoul Walsh. Sergeant Tracey, Objective Burma, to a buddy (1945)
“I am not a great man, but sometimes I think the impersonal and objective equality of my talent and the sacrifices of it, in pieces, to preserve its essential value has some sort of epic grandeur.”
—F. Scott Fitzgerald (1896–1940)