Evaluation of advance dividend from an distinguised profit distribution: An accounting and tax examination<p>Örtülü kazanç dağıtımı açısından kâr payı avansının değerlendirilmesi: Muhasebe ve vergi açısından bir inceleme

Abstract

Advance dividend is the process of distributing dividends to shareholders in advance through the interim period profit of the companies. While the dividend payment is accepted to be made only by company of public ownership, it has been approved to be used by non-public companies as well as the Turkish Code of Commerce numbered 6102. This study provides explanations for the calculation and recognition of profit advance dividends by utilizing the data of IPEK A.Ş., which is non-public company, and the application of implicit earnings distribution provisions through transfer pricing especially for recalled advance dividends.