a dividend. For example, The stripper receiving a non-recoverable loan, instead of a dividend from the target company. The stripper selling a worthless asset to the company. Owners (without a separate stripper) selling a part interest in an asset to the company, but later changing the terms to reduce its value. Losses in the company for such related schemes may be recognised immediately in its accounts, or only booked progressively over future years, the latter being various "forward stripping" schemes. Both are caught by section 177E. Sources Income Tax Assessment Act 1936, Part IVA (inserted 1981) , in particular section 177E . And the explanatory memorandum , . Australian Taxation Office taxation determination TD 95/37 (1995) Australian Taxation Office taxpayer alert TA 2004/3 (2004) United States In the United States, dividends may qualify for a lower rate. However, among other things, the stock must be owned for more than 60 days out of a 121-day period around the ex-dividend date. See also Asset stripping The CumEx-Files are a 2018 investigative report that made public a decade long dividend stripping tax-avoidance scheme in which several European countries incurred tax loss damages totaling more than 60 billion Euros References Stripping Tax avoidance