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DWT Transfer asset undervalue

  • 01-02-2017 8:25pm
    #1
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭


    If a company transfers an asset @ under market value to a shareholder (non director and non employee) is the DWT calculated on the actual shortfall in consideration or is the shortfall grossed up @ 100/80 and DWT then applied?


Comments

  • #2
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭Heisenburg81


    Bump


  • #3
    dogsears
    Registered Users, Registered Users 2 Posts: 535 ✭✭✭dogsears


    If the shortfall is 10k, the DWT is 2k, meaning effectively 12k in cash and value has left the company, but the person receiving the distribution then owes the amount paid (in this case 2k) back to the company as a contract debt. If that gets repaid the cost to the company is a net 10k and the recipient has a net value received of 8k. Hope thats clear.


  • #4
    ThumbTaxed
    Registered Users, Registered Users 2 Posts: 377 ✭✭ThumbTaxed


    dogsears wrote: »
    If the shortfall is 10k, the DWT is 2k, meaning effectively 12k in cash and value has left the company, but the person receiving the distribution then owes the amount paid (in this case 2k) back to the company as a contract debt. If that gets repaid the cost to the company is a net 10k and the recipient has a net value received of 8k. Hope thats clear.

    Huh?

    Surely it is just 10k gross with 2k dwt but I thibk there is no credit for the dwt for the individual is not paid by company


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