Can I issue shares instead of dividends?

asked Dec 16, 2016 in Dividend Tax by anonymous
Can we issue shares in lieu of cash dividend declaration? If it is possible, then will it be okay with deemed dividend tax?

1 Answer

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answered Dec 20, 2016 by Sahan321 (3,350 points)
Yes you can issue shares instead of cash payout. And it is a valid share issue to avoid deemed dividend tax. This type of dividend issue is called scrip dividend.

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