Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
Regulation 1997-4 - Comprehensive Individual Income Tax Regulations
Rule 26-51-404 - GROSS INCOME GENERALLY
Rule 15.26-51-404(a)(1) - Stock Dividends and Distributions from Regulated Investment Companies

The issuance of its own stock by a corporation as a dividend to its shareholders does not result in taxable income to such shareholders but the gain so derived or loss sustained from the sale of such stock, or from the sale of the stock in respect to which it is issued. Distributions received by shareholders from regulated investment companies are, by reason of the shareholder's option to receive the equivalent of cash or new stock, deemed to be a cash dividend and therefore taxable.