lee wrote on Mar 3
rd, 2019 at 12:47pm:
John Smith wrote on Mar 3
rd, 2019 at 12:42pm:
Yes, if they're claiming company tax is paid on behalf of shareholder shten they are wrong. I think you'll find that the only ones to make that claim were shareholders themselves.
Even though Keating said it was to stop "double taxation"?
John Smith wrote on Mar 3
rd, 2019 at 12:42pm:
what is due to shareholders, and even then not always, is a dividend payout that is paid OUT of company profits. The profits do not, nor have they ever, belonged to the shareholder, they belong to the company.
No petal. It is paid out of the companies after tax profit, te tax having been paid on behalf ot the owners. Rather like a Sole Trader, he pays tax on his business profits, as he goes, they are then his profits. And the profits and tax paid go onto his indivuidual tax return. He then has to acquit other income earnesd outside the business structure.
John Smith wrote on Mar 3
rd, 2019 at 12:42pm:
i wasn't the one who presented GST as an alternative to income tax
But you still jumeped to the conclusion.
"Dividend imputation was introduced by the Hawke-Keating Labor government in 1987, to prevent
so-called double taxation of company profits. ... Without franking credits, companies would be taxed on their profits, and individual shareholders would then be taxed on those same profits."
A false reading of company and shareholder individual tax obligations - for the obvious reasons of self-interest.
Companies are obliged to be taxed on their net profits (let's make that clear right now - not their 'gross profits") - shareholders are taxed on THEIR profits.... two different things entirely. Again - company tax and personal income tax are not one and the same, and this whole idea should never have seen the light of day. IF, as you seek to say, these are one and the same - why then is it mandatory to include shareholder franking in shareholder gross income?
No wonder the nation is going broke and splitting up along economic lines - and headed for revolution.
Easy - abolish dividend imputation... company pays its company tax as required by Law - shareholder pays his/her personal income tax as required by Law.
Let's get this back on the straight and level... there was NO double taxation - and the only reason the LNP didn't scream 'economic illiterates' was because they benefited from this silliness as well. Hawke/Keating WERE, over this, and remain, over this - economic illiterates and legal illiterates.
Pay your taxes, you loafers.... how dare you expect and demand a free ride? Dole bludgers....
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