Assuming an imputation tax system with a corporate tax rate of 28%,what is the net personal tax for an investor with a personal tax rate of 45%,if the fully franked dividend is $14 000?

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Quizplus · Accepted Answer

The size of the assessable dividend is the franked dividend divided by 1 minus the corporate tax rate,or 14000/(1 - 0.28)= 19444.On this amount,the investor will pay tax at the marginal rate of 45% .The net personal tax amount is therefore $8750 - $5444 = $3306.

Assuming an Imputation Tax System with a Corporate Tax Rate −$3000-\$ 3000−$3000

Assuming an Imputation Tax System with a Corporate Tax Rate $-\$ 3000$