TELSTRA GROUP LIMITED (ASX:TLS) - Ann: Update - Dividend/Distribution - TLS, page-105 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by cameronb: ↑

I'm not sure if you're baiting me or you are just...

"If you save $1000 AFTER TAX and spend that money on SHARES (ie; part ownership of the company) the SHARES have PAID THE TAX, the original money to purchase the economic interest in the company did not come from nowhere and it most certainly did not come untaxed!"

"The shares have paid the tax"? This is simply rubbish

"TLS pay tax on my behalf for the profit they make with MY equity in the business, if I was not working I too would be entitled to this credit for PAYED TAX."

TLS do not pay tax on your behalf, they pax tax on the profit they make. It makes no difference weather you as the owner are a billionaire or penniless the tax paid by TLS is the same. It is not paid on your behalf it is payed by the company to the government because they made a profit. It is a liability of the company weather its publicly listed , family owned, or owned by a sole person. The tax is paid on behalf of the company not the companies owner.

The Franking Credit is not a cash payment to the company owners it is a credit against any personal tax that they otherwise may pay. If they don't pay any personal tax they cannot cash in the credit

How about this scenario

Mr. Jones wholly owns a mining services company
He has built this company up with money on which he has paid tax (after tax), just as the shareholder has purchased their portion of the Publicly Listed Company
Mr. Jones's Company turns over $15 million of which $1.5 million is Profit
Mr Jones wife is a wage earner, a very successful Barrister. She earns $250,000pa (taxable)
Mr Jones and his wife live substantially off Ms Jones income
As such he only draws a token $15,000 from his mining services company

Mr Jones is below the tax free threshold, as is the non tax paying part owner of the Publicly Listed Company

If the part owner of the Publicly listed company, who pays no tax as they're below the tax free threshold, is entitled to a refund of their share the tax paid by their company. Should not Mr Jones, who is also below the tax free threshold, be entitled to a refund of his share (100%) of the tax paid by his company ($450,000) ?

Of course not and neither should the non tax paying owner of the listed company be entitled to a refund of their share of their company's tax liability

Expand

Not sure I follow your logic. To claim the $450,000 tax paid by company (the franking credit) Mr Jones would need to also declare the associated dividend of ($1.5m) as income on his tax return. He would in fact have to pay additional tax as he would be well above the 30% tax threshold and would not get any of his $450000 franking credit refunded. ,

No.	Vol.	Price($)
3	271136	$3.91

No.

Vol.

Price($)

271136

$3.91

Price($)	Vol.	No.
$3.92	282151	15

Price($)

Vol.

No.

$3.92

282151

No.	Vol.	Price($)
9	444562	3.310
33	2195109	3.300
32	2624483	3.290
25	449073	3.280
15	239418	3.270

No.

Vol.

Price($)

444562

3.310

2195109

3.300

2624483

3.290

449073

3.280

239418

3.270

Price($)	Vol.	No.
3.320	615667	9
3.330	2958318	59
3.340	1762379	73
3.350	2779599	159
3.360	300605	39

Price($)

Vol.

No.

3.320

615667

3.330

2958318

3.340

1762379

3.350

2779599

159

3.360

300605

(20min delay)
Last $3.92		Change -0.030(0.76%)		Mkt cap ! $46.33B

Open	High	Low	Value	Volume
$3.95	$3.95	$3.90	$69.01M	17.63M

Ann: Update - Dividend/Distribution - TLS, page-105

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