Dividends Are Not Remuneration.

Interesting case to come out of BC. The details are mostly relevant to tax nerds, but very generally the case revolved around whether or not dividends are allowed to be paid as compensation for services.

The judge commented that the :

“[D]eclaration of a dividend is, in corporate law, an allocation of a company‚Äôs undistributed profits to its shareholders and does not depend on the conduct of a given shareholder.”

So, in summary, the conclusion was that dividends are not consideration compensation for services.

Read more over on the Financial Post here.



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