@[email protected] · Posted 02 Feb. 2021
Business Upside Get news analysis on Business, Tech, Finance, Entrepreneurship, Lifestyle, Health and Fitnessl, entertainment news and money saving tips.
@Business.Upside · Posted 03 Feb. 2021
Investor A owns shares in Company X worth 20 million euros. Investor C sells shares worth 20 million euros to Investor B without owning them himself (short selling). Investor A receives a dividend payout of 750,000 euros (total dividend - 1 million euros). After payout, Investor A's shares are worth 19 million euros. Investor A receives a tax certificate to reimburse 250,000 euros of dividend tax. Investor A sells shares worth 19 million euros to Investor C. Investor C delivers shares worth 19 million euros to Investor B and pays him an additional 750,000 euros. Investor B sells shares worth 19 million euros back to Investor A. Investor B receives a tax certificate to reimburse 250,000 euros of dividend tax. Investor A, B & C share the tax reimbursements.