TAXED DIVIDENDS
New Zealand shareholders in Australian companies will be interested to learn that the flat rate o£ Federal income tax on the net business profits of Australian companies is Is id in the £1. The minimum rate of Federal income tax on dividends in the hands of shareholders is approximately Is lOd in the £1, including the special tax of Is 6d in the £1. Provision exists in the Federal Income Tax Assessment Act for shareholders to receive a rebate of their own rate of tax, or Is id in the £1, whichever is the smaller, but the special tax of Is 6d in the £1 is being disregarded by the Department for the purposes of the rebate. Thus, a person whose rate of tax on "property" income, apart from the special tax, is id in the £1 will receive a rebate of only 4d in the £1 of the tax on dividends, and will pay the full special tax of Is 6d in the £1. Some shareholders contend that the rate of tax on dividends in the case quoted "should be the full rate of the shareholder, Is lOd, less the company rate, Is 4d, or a net tax of 6d, instead of tho Is Gd in the £1 charged by tho Department. Many variations in the method ol assessment occur, however, because of tho distribution o£ companies' profits earned .ill x>rcvious years.
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https://paperspast.natlib.govt.nz/newspapers/EP19310713.2.128
Bibliographic details
Evening Post, Volume CXII, Issue 11, 13 July 1931, Page 12
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235TAXED DIVIDENDS Evening Post, Volume CXII, Issue 11, 13 July 1931, Page 12
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