Where a company has paid no Australian company tax on profits from which a dividend is paid to shareholders, the dividend is said to be:

Question

Quizplus · Accepted Answer

If a company has paid no Australian company tax on profits from which a dividend is paid to shareholders, the dividend is unfranked. This means that the dividend does not come with any attached franking credits, which are a credit for the tax already paid by the company. As a result, the dividend is subject to the shareholder's marginal personal tax rate when it is included in their income tax return.

Where a Company Has Paid No Australian Company Tax on Profits