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Legal Terms – Distribution
n. 1. The allocation of entitlements to beneficiaries as stipulated in a deceased individual's will or in accordance with intestacy laws. 2. Any disbursement executed by a corporation to a shareholder. There are two distinct categories of firm distribution. An income distribution refers to the allocation of profits created by a firm over its existence, occurring at a specific point in time. A capital distribution refers to a payment issued upon the dissolution of a corporation or when a company reimburses a portion of its share capital. An individual's income distribution is liable to income tax, while a capital distribution received by an individual is subject to capital gains tax, unless it falls under the income tax provisions as specified in the Income Tax Act 2007, section 684, due to securities transactions.
A distribution may occur in cash or in kind.
n. 1. The allocation of entitlements to beneficiaries as stipulated in a deceased individual's will or in accordance with intestacy laws. 2. Any disbursement executed by a corporation to a shareholder. There are two distinct categories of firm distribution. An income distribution refers to the allocation of profits created by a firm over its existence, occurring at a specific point in time. A capital distribution refers to a payment issued upon the dissolution of a corporation or when a company reimburses a portion of its share capital. An individual's income distribution is liable to income tax, while a capital distribution received by an individual is subject to capital gains tax, unless it falls under the income tax provisions as specified in the Income Tax Act 2007, section 684, due to securities transactions.
A distribution may occur in cash or in kind.
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