PREFERENCE SHARES

[SIMBA]

Can a pty investment company hold preference shares in a bank,if so how do we disperse the tax free dividend,to our investors and can we show tax free income on our balance sheet. Any help would be welcom.........

[Preston]

Firstly , tax free income , you can show it under the equity section of the Balance sheet only if your classification is correct i.e Held to maturity. Nothing to my knowedge, prevent a PTY from holding investment in a bank. Tricky Question ,also remember ANTI AVOIDANCE RULE.

[SIMBA]

Thanks for that it is not our intension to break any law,only to use every tool legaly available to maxamise our profits.......