"Shares of company (ie; part ownership bought with previously...

"Shares of company (ie; part ownership bought with previously TAXED and EARNED income), company has been TAXED"
But this tax is refunded to the non tax paying shareholder as a franking credit.


The tax has not been paid when a Person who pays no tax receives a credit for the tax paid by their company.
The company pay tax on its profit
The shareholder who does not pay tax receives this tax, the amount paid by their company, as a credit.
Thus the tax paid by their company is refunded to the non tax paying shareholder.
This is where the tax has not been paid.