Australia's largest stock trading and investment forum Australia's #1 stock forum

Franking credit refunds PBO estimates in doubt, page-68

First 68 Last

Share
Profile

Follow
vendor

6,900 Posts.

50

16/03/19

16:20

Post #: 37785131
Share

Originally posted by boomeronrations ↑

Hi Vendor,
Doesn't help.

Company makes profit. Pays tax.
Distributes cash, plus a tax credit( which cost them nothing, they have already paid it).
If they send you the cash( which is the same amount as above) , without the tax credit, you just get to pay tax on it.
The other thing to remember is that companies can't pay different shareholders different sorts of dividends.
Now companies may change their leverage so as not to pay any tax, then the dividends are unfranked.
They may also change their structure to a trust, the distributions of profit are then not taxable in the trust, so no company tax, but taxable in the hands of the unit holder.
cheers

Expand

Thanks boomer,

So to up the value of an unfranked dividend wont help? (due to company having to pay tax prior to any dividend distribution)
Upvote

Reply

Top Stories

DXB

Dimerix links up with US NEPTUNE network to boost recruitment for FSGS study

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

MIN

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

Making money: How many microcaps should be in an investor's portfolio?

There are more pages in this discussion • 1 more message in this thread...

First 68 Last