Briefly explain why an on-market repurchase by a listed company is more advantageous from a tax...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Briefly explain why an on-market repurchase by a listed company is more advantageous from a tax perspective than an off-market repurchase. Explain why amounts capitalised from taxable bonus issues are included in "available subscribed capital" (ASC) while amounts capitalised from non-taxable bonus issues are not. What is the policy objective behind the 10%/15% bright-line tests for off-market share repurchases and cancelations? Briefly explain why an on-market repurchase by a listed company is more advantageous from a tax perspective than an off-market repurchase. Explain why amounts capitalised from taxable bonus issues are included in "available subscribed capital" (ASC) while amounts capitalised from non-taxable bonus issues are not. What is the policy objective behind the 10%/15% bright-line tests for off-market share repurchases and cancelations?
Expert Answer:
Answer rating: 100% (QA)
OnMarket Repurchase vs OffMarket Repurchase An onmarket repurchase of shares by a listed company refers to buying back its own shares from the open ma... View the full answer
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
Posted Date:
Students also viewed these accounting questions
-
Briefly explain why an individual who receives dividends from a Canadian corporation must include 118% or 138% of the dividend received in income for tax purposes, while a corporation receiving the...
-
Briefly explain why an RRSP is an attractive investment.
-
Briefly explain why an auditor of clients in the Land Development and Home Building industry needs a thorough understanding of the following accounting standards and methods. How do they impact the...
-
Suppose you want to reduce the level of trash disposed by your household. Develop an emission standard, a technology standard, and an ambient standard that would accomplish the reduction.
-
Are the different forms of consumer installment credit in the following table highlycorrelated? Debt Outstanding (millions of dollars) Travel and Bank Total Total Gas Entertainment Creit R Credit...
-
identify and describe one theological discourse in John's gospel
-
(a) Among 880 smart phones sold by a retailer, 72 required repairs under the warranty. Estimate the probability that a new phone, which has just been sold, will require repairs under the warranty....
-
Refer to the information in Problem and assume the periodic inventory system is used. In Problem Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and...
-
A production department reports the following conversion costs. Equivalent units of production for conversion total 436,000 units this period. Calculate the cost per equivalent unit of production for...
-
On January 1, 2025, Carla Vista Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4,569,000 4,160,000 The interest (settlement)...
-
= 3. For the given initial value problem: =sin(ty) y(0) -1, write down the standard Euler iteration with a step-size of 0.1 (Explicitly give yo and give yn+1 as a function of tn, yn and n.) In terms...
-
Are Chinas price controls price floors or price ceilings? Draw a graph to illustrate the shortages of coal and gasoline created by the price controls. The government of China has set price controls...
-
\(e^{\gamma}\), where \(\gamma=\alpha+j \beta\), can be expressed as \(e^{\alpha l} / \beta l\), in which \(\alpha l\) is dimensionless and \(\beta l\) is in radians (also dimensionless). (a) True...
-
Consider whether data distribution skewness exists in some of the numeric variables, and if it does, determine how to transform the data into a less skewed distribution. Perform data sub-setting and...
-
Depending on which of Exercises 7 through 12 you have completed, determine the overall factor of safety of one or more of the following structures. Assume steel members with a yield strength of S Y =...
-
In 2009, the inflation rate reached negative 0.4 percent while the unemployment rate hit 10 percent. If the target inflation rate was 2 percent and the full-employment rate of unemployment was 5...
-
Find the volume of the cylinder in terms of and to the nearest tenth. The volume in terms of + is V= in . (Type an exact answer in terms of .) The volume to the nearest tenth is V = in. (Round to the...
-
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
-
Why is it that a corporate debt owed to a shareholder may be considered as part of the shareholders equity of the corporation? How is a shareholders loan treated for tax purposes?
-
The after-tax cash flow from the earnings of the acquired business may be different for the purchasers if they acquire the shares of the vendor corporation, rather than its specific assets. Explain...
-
Blue Ltd. is a Canadian corporation owned 100% by Karen Samson. Blue manufactures hockey sticks that are marketed to retail sporting goods stores across Canada and Europe. Green Ltd. is a Canadian...
-
Equation 3.3 gives the relation between the downwash and the vortex sheet strength in \(\mathrm{x}-\mathrm{Z}\) coordinates for a positive free stream running from left to write. Obtain a similar...
-
Comment on the physical meaning of the Theodorsen function.
-
Find the phase difference between the displacement and the downwash for a flat plate oscillating simple harmonically in a free stream at a zero angle of attack.
Study smarter with the SolutionInn App