Hence the double taxation. The company had paid tax on it and the shareholder would then pay tax on it again.
For some investors the double tax still exist if their nominal tax is above 30%.
What I was alluding too, is that it would be beneficial if companies started paying unfranked dividends to circumvent BS plan. Companies aren’t compelled to pay franked dividends - that’s my understanding.
Generally, the unfranked dividend normally equates to the grossed up franked dividends.
As I mentioned previously, the interim unfranked dividend is larger and in your possession 6 mths earlier for you to do as you please, than as a franked dividend.
It also denies the govt holding on to your portion of your money as it currently happens under a franked dividend until tax time.
