Dividend imputation and shareholder wealth the

The current tax system will face changes of its own due to the aging population, even if spending requirements do not increase. The tax mix will change. Taxes on capital income for example, interest on term deposits, dividends, etc. Over time it is likely that a focus on capital income taxation will be increasingly important in ensuring that the tax system is as fair and efficient as possible.

Dividend imputation and shareholder wealth the

Financial terms Annuity - A payment at regular intervals of a certain sum of money for a term of years or during the life of an individual. Assets - Everything that a person or company owns or has a right to, from which a benefit can derive.

Net assets are assets in excess of liabilities. Liquid assets are assets either in the form of cash or readily convertible into cash. At call - Funds which can be withdrawn on demand or without notice. Balanced Trust- Balanced Trusts invest in the broadest spectrum of investment markets, including shares, listed property trusts and government securities.

The main advantage in making this type of investment lies in the flexibility afforded to their fund managers in being able to alter the investment composition of the trust in the light of changing economic and investment conditions to pursue the best results.

Blue Chip Stock - Shares in a well established company highly regarded in financial circles. Capital Growth- The increase in value of an asset or investment i.

DEFINITION of 'Dividend Imputation'

Provided the result is positive, not negative Capital Guaranteed - An investment where your money principal is guaranteed safe; usually by a bank, government body, or life insurance company. Cash Management Trust - A unit trust where investors unit holders pool their money into money market instruments which are normally only available to professional investors with hundreds of thousands of dollars to invest in the money market.

Cash trusts operate with a trust deed, a trustee overseeing activities and a management company responsible for the investment strategy. Compound Interest - Interest which is paid on accumulated interest as well as the original principal invested.

Consumer Price Index C. I - Measures the national inflation rate. The index is measured quarterly December, March, June and September quarters and reflects changes in prices up or down of a fixed "basket" or list of goods and services.

Debenture - A type of fixed interest security, issued by companies as borrowers in return for medium and long term investment of funds. Debentures are issued to the general public through a prospectus and are secured by a trust deed which spells out the terms and conditions of fund-raising and the rights of debenture holders.

Deferred Annuity - An annuity where income payments do not commence i. Dividend - The share of profits distributed to shareholders of a publicly listed company. Dividend Imputation - A tax system, where dividends paid by a taxpaying Australian company to its shareholders, carry a credit for the tax the company has already paid on its profits.

This means that shareholders receive a reduction to the tax normally payable. Eligible Termination Payment ETP - This is the term used to describe lump sum funds received when retiring or changing employment that can be rolled over into an Approved Deposit Fund or Deferred Annuity.

Investment Bonds - A lump sum investment product. Technically, an investment or insurance bond is a single premium lump sum investment, life insurance contract.

BREAKING DOWN 'Dividend Imputation'

Maturity - The date on which a debt or other borrowing is due to be repaid. Negative Gearing- A way of obtaining tax advantages through an investment where the deductible expenses typically including interest exceed the income derived from the investment.

Pension - A regular payment made to a person from a superannuation fund or from the Department of Social Security or Department of Veterans Affairs. Rollover - The renewal of a loan facility or continuation of a deposit at each maturity date, usually including a revision of the interest rates.

The term is also used to describe the transfer of Eligible Termination Payments to an acceptable superannuation or rollover fund.Imputation systems integrate corporate and shareholder personal income taxes to alleviate double taxation of dividend income.

In this study, we empirically examine whether a corporate tax rate. Dividend Imputation and Shareholder Wealth: The Case of New Zealand Andrew Prevost, Ramesh P. Rao and John D. Wagster* 1.

Dividend imputation and shareholder wealth the

INTRODUCTION Effective from April 1, , New Zealand changed its existing two-tier `classical' dividend taxation regime to full dividend imputation.

Corporate income is now only taxed once rather. The empirical results suggest that the shareholder wealth gain from dividend imputation was more than offset in firms with large debt levels.

Moreover, an examination of debt ratios indicates debt levels declined in the post-imputation period. JASSA. JASSA: The Finsia Journal of Applied Finance, is a peer reviewed journal that publishes the latest technical analysis and cutting edge research in finance..

Contribute an article to JASSA. Financial Glossary: The Most Comprehensive Investing Glossary on the Web.

Financial, Stock/Share Market, Personal Finance and Investing Definitions and F&Q. IRC § ermöglicht außerdem die Aufspaltung (bifurcation) der Zahlung auf ein hybrides Finanzinstrument in einen Zins- und einen Dividendenteil, z.B.

bei einem equity skybox2008.com capitalization: bei exzessiver Fremdfinanzierung kann die Zinszahlung in eine Dividende umqualifiziert werden, wobei eine debt-to-equity ratio von noch als sicher gilt.

Taxation in Norway - Wikipedia