I don't think withholding tax and an imputation system designed to avoid double taxation are equivalents.
Yes, I understand why people put forward the argument. Both being taxes paid on behalf of shareholders/employees.
My opinion is corporate taxes shouldn't be eroded further by refundable franking credits.
Yes, I realise this results in higher income earners claiming a deduction that would otherwise not be unavailable to those who pay little/no tax.
But it also means the base company tax rate isn't eroded. My o.p.i.n.i.o.n is the franking system shouldn't be used to avoid taxation, rather avoid double taxation.
And finally, companies don't pay taxes on behalf of shareholders. They pay it on behalf of the company as a separate legal entity - removed from both its directors and shareholders.
