Yes they did!
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!
You are really struggling with this idea aren't you?
NB: your statement says it all "The company pay tax on its profit"
The COMPANY IS THE PENSIONER!
That's how ownership of shares works!
It's called a SHARE of a company, it's really not difficult to follow along.
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.
Please tell me this is starting to sink in?
Ann: Update - Dividend/Distribution - TLS, page-102
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