Amorvelle declares a dividend of 900,000, recognised as a liability. Under the legislation in the case, the distribution triggers additional tax of 5% of the dividend, borne by Amorvelle. According to the analysis in the case, 80% of the distributed profits were generated by transactions recognised in profit or loss and the rest by gains recognised in OCI. Compute the additional tax and its allocation.
- Dividend recognised as a liability
- 900,000
- Additional tax (% of the dividend)
- 5 %
- Share of profits generated in profit or loss (%)
- 80 %