Silver Bull Resources Inc SVBL

Distribution of shares Arras

[andre171]

I read that the distribution of shares Arras would be considered a dividend. How much will it be and what will be the withholding tax? Will this tax be deducted when the shares Arras are allocated or later?

[Heywood_Silvers]

It will be a dividend in an accounting sense, but not in a taxable sense.  For tax purposes, corporations can ony pay dividends to shareholders based out of their Earnings & Profits.  Since SVBL has no cumulative Earnings & Profits, the "dividend" for tax purposes will be considered a return of capital, which is a non-taxable event. What should happen is that your