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Risk and Reward Remuneration of shareholder employees The Penny and Hooper decision is a landmark tax avoidance case that has implications for small businesses operating through a company or trust.
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01
Determine the remuneration amount for shareholder employees based on their roles and responsibilities within the company.
02
Ensure that the remuneration amount is reasonable and reflects the value of the services provided by the shareholder employees.
03
Calculate the remuneration on an annual basis, taking into account any changes in the employee's roles or responsibilities throughout the year.
04
Keep detailed records of the remuneration payments made to shareholder employees for tax purposes.
05
Consult with a tax professional or accountant to ensure compliance with any tax laws or regulations related to remuneration of shareholder employees.

Who needs remuneration of shareholder employees?

01
Companies with shareholders who also work as employees
02
Small businesses that are structured as corporations and have shareholders
03
Business owners who want to receive compensation for their work as employees
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