Payments, benefits and dividends

Introduction

The following student learning activity is designed to consolidate your knowledge of taxation of payments and benefits to directors and employees, and distributions to shareholders. The individual questions require you to consider and apply information contained in chapters 19 and 20 of Business Law.

A simple fact pattern follows requiring you to deal with a matter. Based on this, you will be asked a number of questions designed to make you consider the advice you would provide. A correct answer will allow you to move on to the next question and may also provide you with further facts relevant to your activity. If you answer incorrectly, you will receive feedback designed to assist you in coming to the correct answer. Feedback may include references to appropriate paragraphs in the book. Some questions may require multiple answers. Note that, for some questions, you may consider there to be more than one possible answer. If this is the case, you should choose the answer that, in your opinion, provides the best advice in the circumstances.

Elements of a number of the correct answers will build to provide you with a printable record of the steps by which you dealt with the matter.