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Which One of the Following Is NOT True Regarding Income

Question 66

Multiple Choice

Which one of the following is NOT true regarding income tax and the imputation system?


A) When companies pay Australian federal income tax they receive franking credits
B) Shareholder may use franking credits to reduce the tax they have to pay
C) In the imputation system the effective tax rate is the company tax rate
D) There is only one company tax rate and many different personal tax rates

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