FIM FIM TAXATION AT THE COMPANY LEVEL Taxable income 100 Corporate income tax at 25% ( 25) Net income after tax 75 Computation Of Shareholders' Taxable Dividend Income Cash dividends received 75 Imputed tax credit of 1/3 of cash dividend 25 Taxable dividend income 100 Taxation Of Two Different Shareholders With 25% Tax Rate Taxable dividend income 100 100 Deductions (interest expense, etc.) (100) - Taxable investment income 0 100 Tax on taxable income 0 25 Less imputed tax credit ( 25) ( 25) Tax refund 25 Additional tax liability 0
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