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Buy custom Malaysia - Imputation to Single Tier System

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Topic: Business
Number of pages / Number of words: 2 / 456
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Consequently, the tax credit on dividend income will be more than the tax payable on dividend income, resulting in cash refund. In the single tier system, interest expense will be a permanent loss.


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The first and main advantage of this system is the ‘complete free flow in the channeling of profits of the company to the shareholders as exempt dividends’ (Choong, 2008). This is to say that as long as there are profits made by the company, it is allowed to frank the said profits as dividends to its shareholders without any limitations...


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