'Dividend imputation' allows the tax paid by the company issuing the dividends to offset personal taxes payable on the dividends.

Question

Quizplus · Accepted Answer

Dividend imputation is a policy used in some tax systems that eliminates or reduces the double taxation of dividends by allowing the tax paid by the company issuing the dividends to be offset against the personal taxes payable on the dividends. Therefore, the statement is true.

'Dividend Imputation' Allows the Tax Paid by the Company Issuing