[vidarh]

Let's say you have a tax debt of 1m, and your choice is to take out a 1m net dividend. Now you have to pay dividend tax.

The other alternative is to borrow 1m, and pay interest on a 1m loan.

Unless you hold the loan long enough for the aggregate interest accrued until you're able to sell some shares exceeds the dividend tax, it's a net saving.

[cscurmudgeon]

Ah, ok. But how many illiquid companies pay out dividends though?

The real alternative is to not tax illiquid wealth.

[vidarh]

> Ah, ok. But how many illiquid companies pay out dividends though?

Ones whose founders have protected themselves against a significant wealth tax bill by ensuring investment agreements etc. protect their ability to. It's not rocket science to make this work if you worry about it.

> The real alternative is to not tax illiquid wealth.

Why? Taxing illiquid wealth has worked just fine in Norway for decades.