The Dividend Imputation System in Australia and New Zealand Ensures

question 35

Multiple Choice

The dividend imputation system in Australia and New Zealand ensures that:______

• A)both company profits and dividends received by shareholders are always taxed at the average rate
• B)company profits and dividends received by shareholders are taxed at the same rate
• C)if a company pays a dividend out of after-tax profits domestic shareholders who receive this dividend receive a tax credit.
• D)Australian resident shareholders do not pay tax on dividends received
• E)Australian and New Zealand companies do not pay corporate tax

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Definitions:

State Appeals Court

A court that reviews decisions made by lower courts and determines whether legal errors were made during the trial process.

Trial Court

A court in which cases are heard in the first instance, as opposed to an appellate court.

Binding

A legal agreement or practice that is enforceable in a court of law.

Private Law

Law that involves suits between private individuals or groups.