Standard Chartered Bank and Others v Commissioner General Uganda Revenue Authority (HCT - 00 - CC - CS - 63 - 2011)
Standard Chartered Bank and Others v Commissioner General Uganda Revenue Authority (HCT - 00 - CC - CS - 63 - 2011) [2011] UGCommC 2004 (21 November 2011)
The court held that the issuance of bonus shares by the plaintiff banks does not amount to a distribution of accumulated profits within the meaning of Section 2(W)(V) of the Income Tax Act. The Act does not expressly include bonus shares in its definition of dividend, and the conversion of reserves into share capital through bonus shares does not result in a transfer of assets or profits to shareholders. The court found persuasive the reasoning in Commissioner of Income Tax, Bihar v Dalmia Investments, which distinguished bonus shares from dividends for tax purposes. The court further rejecte…
Source excerpt
- Income Tax
- Withholding Tax
- Bonus Shares
- Company Dividends
- Capitalization Of Reserves