Company shareholders with a low personal rate of tax will receive value from any tax shields available under a system of dividend imputation.

Question

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Under a system of dividend imputation, when a company pays out dividends, the shareholders can receive a credit for the taxes the company has already paid. This means that if a shareholder has a low personal rate of tax, they may receive value from any tax shields available, as they can use the credit to offset their own tax liability.

Company Shareholders with a Low Personal Rate of Tax Will