-6- Taxable Income (after compensation deduction but before Fiscal Total Gross Gross NOL and Dividends Year Assets Sales Profit special deductions) Paid 1979 $10,736,361 $7,293,533 $51,170 ($2,219,417) N/A 1981 13,509,999 6,728,333 (773,038) (3,555,130) N/A 1982 7,314,042 43,924,265 7,425,068 5,370,502 N/A 1983 5,988,429 1,629,951 631,942 224,775 N/A 1984 4,881,551 85,160 (261,106) 517,618 N/A 1985 1,944,932 N/A N/A (177,704) N/A 1986 3,424,362 N/A N/A (141,442) N/A 1987 2,964,861 5,740,283 1,592,523 3,119,831 N/A Petitioner's 1987 taxable income before the compensation deduction was $4,922,631. Dividends Petitioner paid RLLH a Can$743,828 dividend in 1983, and a Can$878,787 dividend in January 1985 out of petitioner's capital account. Under Canadian tax law at the time, when a dividend was paid out of a capital account, the distribution was not taxable because it represented the nontaxable portion of capital gain. Shareholder's Equity Petitioner reported shareholder's equity on its audited financial statements as follows: Fiscal Year Shareholder's Equity 1986 $969,242 1987 1,786,314Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011