This one is for the accountants on this forum.
About 7 years ago Gilligan Rowe advised me to have my company declare capital dividend for the purposes of asset protection (i.e. sticking the equity that i had in my company into a trust, as the shareholder of the company, so creditors can not reach it).
I have since been through two accounting firms, and neither raised any issues. I am now on my third accounting firm, and the accountant tells me that it is not possible to declare a dividend from an unrealised capital gain. He says a dividend can only be declared/paid from realizing equity by selling assets or making an operating profit.
Now, Gilligan Rowe sort of know what they are doing, and so does the new accountant from Delloite. But it seems that only one of them can be right in this situation. Is there anything that i am missing? Can anyone please shed some light on the issue?
Thanks.
About 7 years ago Gilligan Rowe advised me to have my company declare capital dividend for the purposes of asset protection (i.e. sticking the equity that i had in my company into a trust, as the shareholder of the company, so creditors can not reach it).
I have since been through two accounting firms, and neither raised any issues. I am now on my third accounting firm, and the accountant tells me that it is not possible to declare a dividend from an unrealised capital gain. He says a dividend can only be declared/paid from realizing equity by selling assets or making an operating profit.
Now, Gilligan Rowe sort of know what they are doing, and so does the new accountant from Delloite. But it seems that only one of them can be right in this situation. Is there anything that i am missing? Can anyone please shed some light on the issue?
Thanks.
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