Connected Corporations and Part IV Tax

russian roots reggae, bedroom pop ska · 3:51

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Lyrics

[Verse 1]
When corporations intertwine through ownership stakes
Connected status changes what taxation makes
Portfolio dividends flow between separate firms
Part Four tax awakens when deferral worms

[Chorus]
Connected means controlled, fifty percent or more
Part Four kicks in when dividends pour
Portfolio rules apply, refundable tax due
Stop the deferral game, keep revenue true
Connected means controlled, ownership's the key
Part Four tax ensures no tax-free spree

[Verse 2]
Associated companies share the same controller
Part Four tax becomes the dividend roller
When private corps receive investment income streams
Refundable tax shatters deferral schemes

[Chorus]
Connected means controlled, fifty percent or more
Part Four kicks in when dividends pour
Portfolio rules apply, refundable tax due
Stop the deferral game, keep revenue true
Connected means controlled, ownership's the key
Part Four tax ensures no tax-free spree

[Bridge]
Subject corporation pays the dividend out
Recipient corporation can't dodge about
Thirty-eight and one-third percent rate applies
Unless connected status qualifies
Refundable dividend tax on hand account
Makes integration principles paramount

[Verse 3]
De jure and de facto control both count
Ownership percentages we must surmount
When dividends cross between connected firms
Part Four tax prevents abusive terms

[Chorus]
Connected means controlled, fifty percent or more
Part Four kicks in when dividends pour
Portfolio rules apply, refundable tax due
Stop the deferral game, keep revenue true
Connected means controlled, ownership's the key
Part Four tax ensures no tax-free spree

[Outro]
Integration principles must prevail
Part Four tax tells the tale
Connected corporations can't defer
Tax neutrality we ensure

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