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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › scrip dividends
“One major disadvantage in these scrip dividend plans is that shareholders receive no cash with which to pay taxes on the dividends.”
sir but if shareholders are not receiving any cash as dividend, then how can there be any tax implication. Getting more sales increases wealth without having any tax implications, as gains are unrealised or notional.
so what taxes on dividends is this line talking about?
Scrip dividends are taxable just as cash dividends are.
