Accountants, and particularly tax accountants, have a wonderful way of making themselves indispensable. They use explanatory terms that induce creeping somnolence and decreasing sentience amongst the general population. In other words, they use sentences that put you to sleep. Once you are asleep, they can issue their bills and there is not much you can disagree with them on as you slept through the entire process. Sign here, please.
Dividend imputation is one of those terms that just seems to cause abject boredom to everyone else but gets many accountants excited.
First, an explainer. In most of the world companies pay tax and then, when they pay dividends, those dividends are also taxed as income to the shareholders. This, as you may have noticed, is effectively taxing the same income twice. The result is that many companies don’t pay much in dividends or they seek out tax havens to reduce … Read the rest