Big businesses who give shareholders tax credits pay more tax: study
- Written by Roman Lanis, Associate Professor, Accounting, University of Technology Sydney
Businesses who pay dividends to shareholders with tax credits attached pay more tax, new research finds. This occurs because of dividend imputation whereby shareholders get a credit for corporate tax the business pays, on the dividends they receive.
Over the period of 2004 to 2015, we studied financial statement data from companies listed on the...
