The Nonenforcement of Section 305 Dividend Treatment

2 Pages Posted: 9 Dec 2009

Date Written: May 19, 2008

Abstract

This proposal suggests that the tax consequences of publicly announced buybacks be subject to or allowed to avoid the rules of section 305.

The proposal is made as a part of the Shelf Project, a collaboration by tax professionals to develop and perfect proposals to help Congress when it needs to raise revenue. Shelf Project proposals are intended to raise revenue, defend the tax base, follow the money, and improve the rationality and efficiency of the tax system. This is the latest in a series of Shelf Project international tax proposals by the author. The tax community can propose, follow, or edit proposals at http://www.taxshelf.org. A longer description of the Shelf Project can be found at ‘‘The Shelf Project: Revenue-Raising Projects That Defend the Tax Base,’’ Tax Notes, Dec. 10, 2007, p. 1077, Doc 2007-22632, 2007 TNT 238-37.

Shelf Project proposals follow the format of a congressional tax committee report in explaining current law, what is wrong with it, and how to fix it.

Copyright 2008 Charles I. Kingson.

Keywords: tax reform,dividends,buybacks

JEL Classification: H20

Suggested Citation

Kingson, Charles I., The Nonenforcement of Section 305 Dividend Treatment (May 19, 2008). The Shelf Project, Tax Notes, Vol. 119, p. 749, May 19, 2008, Available at SSRN: https://ssrn.com/abstract=1520086

Charles I. Kingson (Contact Author)

Ernst & Young ( email )

787 Seventh Avenue
ITS Division
New York, NY 10019
United States

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