The dividend imputation scheme means investors in companies that pay income tax are able to claim back which of the following against their dividend income?

Question

Quizplus · Accepted Answer

Under the dividend imputation scheme, investors in companies that pay income tax are able to claim back the tax credits attached to the dividend income they receive. This means that the tax paid by the company is credited to the investor, who can use it to offset their own tax liabilities. Option A (tax expenses) and option C (tax debits) are not applicable under this scheme, and option D (the full amount of dividend income) is incorrect as investors are only able to claim back the tax credits associated with the income.

The Dividend Imputation Scheme Means Investors in Companies That Pay