P212 CJJFAX 2 212 Sat 20 Feb 18:11/07 SU5PLUS ACT — A £7bn CO PORATJHEADACHE Last wieW the Govjrnmjnt published the so-called "shadow ACT" regulations to dial with an estimated £7bn of surplus Advanced Corporation Tax. They will only affect companies and groups containing companies with surplus ACT at April 1999. The regulations provide for notional amounts of ACT, called shadow ACT, to arise when companies make a distribution of profits (eor example, the payment of a dividend) on or after 6 April 1999. Shadow ACT governs the recovery by companies of surplus ACT once ACT has been scrapped. 2/5 TV Gujdj 600 Wjathjr 400 Savings Guide 250 Front Page 100 Next News ShawShare MonjyFile Main MenuP212 CJJFAX 2 212 Sat 20 Feb 18:13/29 Wj£3kj£3kj£3k SU5PLUS ACT — A £7bn CORPORBTJ HEADACHE KPMG is urging companies with surplus ACT to consider the following actions: R returning cash to shareholders in a form which is treated as a repayment of capital * replacing dividends with rolling share buybacks to enable companies to soak up unrelieved surplus ACT * passing cash to shareholders as foreign income dividends so that ACT paid by the company is potentially recoverable. FEDs are abolished from 6 April 1999 but the transitional relief is fairly gjnjrous 3/5 TV Gujdj 600 Weather 400 Savings Gujdj 250 Front Page 100 Next News ShawShare MonjyFili Main MenuP212 CJJFAX 2 212 Sat 20 Fed 18:11/51 WE£££"£££"£££ OO]LOL SU5PLUS AC$ — A £7bn CO PORBTJHEADACHE KPMG is urging companies with surplus A $ to consider the following action: * offering scrip alternatives in lieu of cash dividends which usublly avoids generating ACT or shadow ACT. KPMG said the ACT charge on dividends effectively imposed a minimum tax on the corporate sector, even if a company had not taxable profits overall. The current mix of company profits and distributions will@disappear along with AC$, which means that the level of corporate profits will therefore be of greater importance to the JxcPequer than previously. 4/5 TV Gujdj 600 Wjathjr 400 Savings Gujdj 2u0 Front Page 100 Next News ShawShare MonjyFili Main Menu