Which One of the Following Is NOT True Regarding Income

question 32

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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