Hi radicool Sorry mate, I don't know where you are getting your...

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    Hi radicool

    Sorry mate, I don't know where you are getting your information from.

    Year 1. A company lodges a tax return and pays 30% tax on profit. As soon as you are in a payable situation, you enter the PAYG system. So in year 2 the company starts paying tax on on a quarterly based based on the previous years tax.
    Where does the imputed portion going to the government come in?

    And just for your information, all tax is payable in advance. Employees are taxed on their wage period for administrative puropses.

    I think there is a misconception that a company pays tax on behalf of shareholders. That is a nonsense.

    A Company is a separate legal entity and pays tax on its own right.

    Before Keating, when the company distributed after tax profit to the share holders, the shareholders would declare the dividend and pay tax on it. Hence the double taxation. The company had paid tax on it and the shareholder would then pay tax on it again.

    The imputation system introduced by Keating was that if a dividend was received out of after tax (imputation attached) you would pay tax on that dividend at the rate of Dividend + Imputation. You would then get a rebate of the imputation amount. Furthermore, under Keating the maximum rebate that you would get back was to get you to the level of zero tax payable. Hence no return of excess franking credits. This is the part that people conveniently forget.
    Howard changed that last part. And spawned the biggest con on Australian taxpayers.

    If Labor had just come out and said "we are bringing the law back to what Keating introduced" without exceptions, then we would not be having this discussion.

    But it wants to exclude non SMSF and pensioners and hence other people are squealing like stuck pigs.

    Pear
 
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