I just spoke with Director, page-162

'There must someting wrong somewhere..?

"A dividend is treated as income...rather than a return of capital....
Ask the tax man..."

Dividends don't appear out of nowhere. They just mean there is less capital gain. Nobody is any better off after receiving a dividend.



"If he must pay tax on a dividend....well thats just fair....not a negative..."

Mr Xu live in China. He can't claim franking credits and will be taxed by the Chinese government as well.



"I love to pay tax on my investments because it meens that a profit has been made.."

It means nothing of the sort. Many companies borrow money to pay a dividend

Apple has only paid two dividends. Berkshire Hathaway has no dividends.



"I dont get UR suggestions on the major shareholder getting benefits from no divy or a decrease in the share price."
Because all shareholders benefit from a divy and an increase in the share price.."

A dividend simply means less capital gain. Nobody is any wealthier.

If you want to buy shares you are worse off if the share price increases.

If a company is good you want the price to fall so you can buy more shares.