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
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