QUOTE(aspartame @ Mar 14 2019, 09:23 PM)
Good point. But for argument sake, as long as the company is still expected to be profitable in the future, they can still avoid double taxation because the 300k director fee will result in 200k net loss. This net loss can be carried forward to offset future net profit, so that there is no double taxation. However, if the business never make a profit going forward, then the 200k would have double taxation. Correct ah?
Losses may not necessary can be carried forward for next year tax computation. It depends on nature of the loss, type of it, and existing tax regulation.
As it needs to go into details to determine the tax implication, which normally advisable to get advice from tax consultancy firm.
I don't think loss resulted from excessive director fee pay out can be carried forward for next year tax. Correct me if I am wrong.
This post has been edited by cherroy: Mar 15 2019, 09:45 AM