Assuming an imputation tax system with a corporate tax rate of 28%,what is the after tax dividend for an investor with a personal tax rate of 15%,if the fully franked dividend is $21 000?

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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 21 000/(1 - 0.28)= 29 167.On this amount,the investor will pay tax at the marginal rate of 15% .The net personal tax amount is therefore 4375 - 8167 = -$3792,which makes the after tax dividend $21 000 plus $4375 which equals $25375.

Assuming an Imputation Tax System with a Corporate Tax Rate $11985\$ 11985$11985

Assuming an Imputation Tax System with a Corporate Tax Rate $\$ 11985$