BLAW30002 Lecture Notes - Lecture 11: Telstra, Dividend Imputation, Investment Banking

• School: University of Melbourne
• Department: Business Law
• Course: BLAW30002
• Professor: Sunita Jogarajan

Document Summary

Question 1 [this is question 3(b) from the 2014 final exam. ] One of the companies in which penny owns shares, telstra, paid a partially franked dividend on 31. Penny received a cheque for and the distribution statement specified that the dividend was 70% franked. Advise penny as to her income tax consequences arising on the receipt of the dividend from telstra. (5 marks) The amount of the frankable distribution that penny received from telstra in the form of a dividend is included in her assessable income under s 44 itaa36. For telstra to have paid a dividend of , the company must have earned income of and paid of tax. The maximum franking credits that can be attached to penny"s dividend of is . 70% franked - 70% franking credit - passes on tax liability to s/h to eliminate double taxation. Question 2 [this is question 2 from the 2015 final exam.