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| 2003/1/8 [Reference/Tax] UID:27027 Activity:nil |
1/7 Cool loophole in proposed tax cut on dividends. To pay a tax
free bonus to your employees (or c-level execs...), just create
a special purpose private company "BonusCompany" and seed it with
the bonus money. Issue stock to the bonus recipients in proportion
to the desired bonus amounts, pay out the bonuses as a dividend,
dissolve the company, and viola! -mel
\_ Viola?
\_ Voila!
\_ Only commie countries like America tax dividends and capital
gains. |