Shareholder Benefits

As a shareholder are you aware of the benefits you are receiving and their potential tax implications? Crowe MacKay advisors review common shareholder benefits you may encounter and the importance of identifying these.

What is a shareholder benefit?

Shareholders may be subject to tax on benefits that they receive (or are deemed to receive) from their companies. A shareholder benefit can arise in a number of ways, such as when a company pays for items or provides use of company owned assets for the benefit of the shareholder instead of the company.

Money that comes into a business is meant to be used for business purposes, meaning that it should be used to pay for expenses or costs directly related to operating the business. The business bank account or company credit card should not to be used to pay for personal expenses which may include personal meals and entertainment or any other personal items which are not directly related to the operation of the