Intra Group Dividends Do Not Result in a Requirement for Tax

question 7

Multiple Choice

Intra group dividends do not result in a requirement for tax effect adjustments on consolidation if:

• A) group companies are Australian
• B) the dividend is fully franked
• C) Both A and B
• D) none of the above

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Definitions:

Mirror Image Rule

A legal doctrine stating that an offer must be accepted exactly without modifications for a contract to be valid.

Contract Interpretation

The process of determining the meaning of the terms and provisions within a contract, often involving analysis of language, context, and intent of the parties.

Standard Construction Rule

Principle in legal interpretation that mandates the use of ordinary or commonly accepted meanings of words, in the absence of specific definitions.

Mutual Assent Rule

A fundamental principle in contract law that states a contract is only formed when parties involved agree on the same terms at the same time, indicating mutual agreement.