(c) State the tax consequences for both Glaikit Limited and Alasdair if he borrows money from the company, as
proposed, on 1 January 2006. (3 marks)
(c) State the tax consequences for both Glaikit Limited and Alasdair if he borrows money from the company, as
proposed, on 1 January 2006. (3 marks)
(c) Alasdair is not employed, nor is he a director, of Glaikit Limited. As he holds 25% of the shares in Glaikit Limited, he is aparticipator in a close company and therefore the special close company provisions will apply. Thus Alsadair will be taxedunde
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