Owner does not prefer salary

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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May 15, 2018 at 1:14 pm #452083
humai
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Sir if an owner runs company but does not take salary and prefer to take money out of business through high dividends,so basically what is the advantage or disadvantage of such course of action i.e taking the money out via dividends instead of taking salary?
What it has to do with tax?
May 15, 2018 at 6:44 pm #452144
John Moffat
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The tax treatment of salaries is different from that of dividends. This is explained in the Paper F6 lectures. You are not expected to know tax rules for Paper F9 (although it is one of the reasons that the ACCA recumbent that the papers are taken in number order).
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