• Distributable surplus

    109. What is a distributable surplus?

    The amount of a private company's distributable surplus for its income year is calculated according to the formula contained in subsection 109Y(2). A private company's distributable surplus is an upper limit on the sum of amounts that can be treated as dividends under Division 7A for its year of income.

    (See subsection 109Y(1).)

      Last modified: 14 Sep 2010QC 16852