anyone remember the formula? i think its Corp Tax + (1-Corp Tax * Individual Tax) or something like that
Thats correct. The imputation (I think that is spelled correctly) is basically the same thing. The last one (I forget the name) is the same is you marginal tax rate.
That formula is for double taxation, I think? What Nib talked was the imputation tax rate system and we also have split-rate where we have different tax rates for dividends and corporate tax.
mike0021 Wrote: ------------------------------------------------------- > anyone remember the formula? > > i think its > > Corp Tax + (1-Corp Tax * Individual Tax) > > or something like that here is an easy way to remember double taxation: pre-tax: $1 after corp tax: 1 - corp tax after individual tax: (1-corp tax)*(1-individual tax) effective tax: 1 - (1-corp tax)*(1-ind tax) = corp tax + ind tax - corp*ind tax = corp tax + (1- corp tax)*ind tax = … lots of different ways of expressing the same formula