It may seem odd that a tax policy that appears to be a tidying up exercise from the Albanese government, forecast to generate a modest $10 million, could generate so much heat from shareholders. But fiddling with any part of Australia’s existing dividend franking regime is a dangerous exercise.
No surprise then that Wilson is back on the warpath - highlighting the potential pitfalls and “unintended consequences” of the Albanese government’s latest attempt to apply a bit more rigour around the distribution of franking credits to shareholders. The franked dividend regime was originally designed to avoid shareholders paying tax on dividends when the corporation had already paid tax on the profit it was distributing.It was designed as an effective way for shareholders to receive their share of a company’s profit.
He adds there is too much ambiguity around what the government describes as an integrity measure. And argues that companies without sufficient profits to distribute franking credits could be pushed into the riskier practice of borrowing to pay a franked distribution. It only makes sense for the government if this move represents the thin end of the wedge and there are additional plans in place for further altering the tax treatment of franking credits, or it expects this measure to reap more than $10 million.
EKnightOfficial OPINION of a self-serving nobody.
EKnightOfficial Is he being funded by Tim Wilson and family and friends?
EKnightOfficial Albo is more than happy to throw the younger generations under the bus to appease rich boomers. He is Scomo in a south’s jersey
EKnightOfficial Franking credits have always been a double-dip tax dodge exclusively for the wealthy - is it any wonder the Libs identify with it🙄 If a company pre-pays tax on a dividend given to the shareholder, then the govt gives that back to the shareholder, who's paid tax? A: No one
EKnightOfficial يجب ان تدعمون الطرفين في النزاع والقتال القائم بين اوكرانيا وروسيا مثلما دعمتم النزاع والقتال في حرب 8 سنوات بين العراق وإيران وبالنهاية تخلصتم من الدولة الرابحة ودمرتم نظامها وإقتصادها للعراق !!!
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