Incorrect, tax has already been paid on that income at the company tax rate, hence the dividend is already reduced for tax. Its not a handout.
Should we also tax bank account interest, rental income or bond coupons at the company tax rate then pay a reduced dividend to people as well?
That notion is like saying just because someone only worked a small part of the year and earned $5,000 total in two months, that they shouldn't get all their withholding tax back just because they are under the tax free threshold.
In order to give you the best site experience, we need to know what kind of investor you are. Please select the title that best describes you below.
Financial Advisers - Investment
Financial Advisers - SMSFs
Individual Investors with SMSFs
Financial Advisers - Insurance
Accountants and Solicitors
Financial Services Professional