Replies to post #8433 on Interups Inc (ITUP)

[RealDutch]

There are more people who pointed out the tax benefits. Initially I wanted to pay the dividends ahead of Christmas so people can use the money for some shopping. But Laxmi needed 3 weeks after closing month of november, so that is how we ended up with dec 22. Which is not ideal because you will receive the money after Christmas. So we might as well pay it first week of January.

As for the vertical shares, book closure date was september 15. The tax authorities are interested in "market value" of the shares when it concerns the income tax. And september 15 the vertical companies had no revenues or profits, so no income tax is due. If you paid $0.01 for the shares then that should be your cost basis (for Capital gains tax later on). IMO. All depending on the tax laws of your country of course.

[RealDutch]

You also need to know the value of the vertical shares as of dec 31, for the wealth tax (if applicable).
For me it is relevant.
Again, the tax authorities will be interested in "market value".

The shares are not publicly listed, so that is problem nr. 1.
Then the tax authority will look for an independent reference transaction in the market place. I don't think we will have that either.
And then they will use the discounted cash flow approach, from what I read.
Geez, the company will have to tell us what the shares are worth as of dec 31. IMO. What we have to report. I don't see how else we are going to do this.