Dividend Payout

Question

Where a company declares assessable loss for 2 consecutive years but has a retained earnings which has been reducedd by the loss. And the company pays out dividend. Will this be acceptable for tax purposes.

Answer 1

There is no restriction in this regard as far as IFRS rules are concerned. However you may need to check out your country's tax rules and company laws whether such dividend declaration is disallowed. Generally it is allowed in most jurisdictions.