No unfortunatly he is not right. If his tax rate is 30% this simply means he has no more tax to pay on the dividend. ie the company tax rate is 30% as is his, therefore the government has already received its share of tax on the money which has been remitted by the company, and hence no more tax is needed to be paid.
He cannot deduct this imputation credit from his assessable income. Think about this carefully, if he was able to deduct the imputed credit from his assessable income, the government would effectively not recieve any taxation from this scenario.
Only people on a tax rate of less than 30% are entitled to offset a portion of the imputed credit because in this case the company has paid more tax than the individual is required to pay.
I hope my explanation clears this up. If you still are a little confused have a geez at www.ato.gov.au.
- Forums
- ASX - By Stock
- BANKS
- Coming back with a vengeance!
BANKS
banks and financial institutions
Coming back with a vengeance!, page-42
Featured News
Add BANKS (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
BGD
BARTON GOLD HOLDINGS LIMITED
Alex Scanlon, Managing Director & CEO
Alex Scanlon
Managing Director & CEO
SPONSORED BY The Market Online