'Dividend stripping' is the formal name for schemes that strip companies of dividends for a tax advantage
e.g. company has retained earnings & franking credits valued at $10M. You buy the company, i.e, its shares, for say $7M. Then you strip all the earnings by paying a dividend of $7M with $3M in franking credits. On this you must pay an extra $1.5M in tax.
However, once you strip the dividends, the company is worthless. You liquidate the company & get a $7M capital loss for your cancelled shares, which you use to offset your other capital gains.
This is dividend stripping.
'Dividend stripping' is the formal name for schemes that strip...
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50.0¢ |
Change
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Mkt cap ! $981.9M | |||
| Open | High | Low | Value | Volume |
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| No. | Vol. | Price($) |
|---|---|---|
| 7 | 146235 | 50.0¢ |
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| Price($) | Vol. | No. |
|---|---|---|
| 50.5¢ | 40346 | 3 |
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