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Accounting/Tax treatment of a dividend from a Liquidated Company

Accounting/Tax treatment of a dividend from a...

What is the accounting and tax treatment for a dividend received from a company which has been liquidated?

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08th Aug 2012 14:51

I'm confused was it paid

I'm confused was it paid before the liquidation or after

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By Mr Glen
08th Aug 2012 16:35

The dividend was paid to the creditors after the liquidation.

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08th Aug 2012 16:39

Bad debts?

I presume that the dividend relates to an old debt that had previously been provided as a bad debt. If so, I'd bring the income in as a credit to bad debts.

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By Mr Glen
09th Aug 2012 09:38

Frank Investment Income

Thanks Stephen

That is correct I had written off the debt in the previous year. My only concern was because the liquidators stated that is was a dividend then should it be treated as franked investment income.

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