What confuses me about the dividends is, If they make profits on their revenues and sales after all the costs and expenses have being taken out of the equation, they would have to pay tax on the profits. There is no way out of it. Unless of course they are carrying forward huge losses from before, and I don't believe that it is the case, lol.
So, if the dividends are paid out of profits, to which tax was paid upon them, they would have a franking credit attached to them. Why would they want to keep the franking credits in their books for??
As such, as to why the small dividends we receive are unfranked, is totally beyond me.
Can someone explain this to me??
Buddy
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