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CD 10: Bonus issue by foreign unit trust instead of money or property
or “Foreign unit trusts may give bonus units instead of cash or property, which counts as a dividend”
You could also call this:

“Rules for treating certain tax-avoiding arrangements as dividends”

When you’re dealing with income, you need to know that some arrangements are considered to avoid tax, and the money involved is treated as a dividend. This applies in three specific situations:

First, if there’s an arrangement that involves dividend stripping. You can find more details about this in section GB 1.

Second, if a relative is paid too much. This is explained further in section GB 23(7).

Third, if a close company (which is a type of company with few shareholders) pays too much to its shareholders, directors, or their relatives. You can read more about this in section GB 25.

In all these cases, the money is treated as a dividend, which means it might be taxed differently from other types of income.

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Next up: CD 12: Superannuation schemes entering trust rules

or “How superannuation schemes are treated when they become superannuation funds”
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Part C Income
Income from equity

CD 11Avoidance arrangements

  1. An amount treated as a dividend under any of the following sections is a dividend:

  2. section GB 1 (Arrangements involving dividend stripping):
    1. section GB 23(7) (Excessive remuneration to relatives):
      1. section GB 25 (Close company remuneration to shareholders, directors, or relatives).

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