| Australia - Imputation system
The basis of the imputation system of company taxation is that individual shareholders who receive assessable dividends from a company are entitled to a credit for the tax paid by the company on its income. From the shareholders point of view this means that dividends may, in effect, become tax-free to varying extents. From the companys point of view it means that records must be kept to verify the amount of credit which can be passed on to the shareholder. More information Imputation Reference Guide For Business |
