Taxes and Dividend Policy
Rate of Income tax
15% 33% 47%Operating IncomeCorporate tax (Tc=.33) (^100351003310033)
After Tax income 67 67 67
Grossed up DividendIncome tax (^100151003310047)
Tax credit for Corp PmtTax due from shareholder -33-18 -33 0 -33 14
Cash to Shareholder 85 67 53
Under imputed tax systems, such as that in Australia, shareholders
receive a tax credit for the corporate tax the firm pays (figures in
Australian dollars)