What is the imputation system and why is it necessary?

The imputation system provides the means by which Australian corporate tax entities are able to pass on, to their members, credit for income tax they have paid. The way in which they do this is by franking a distribution. Without the imputation system, income tax would be levied when income is earned by the entity and then again in the hands of the members when it is distributed to them.

    Last modified: 28 Jul 2016QC 16618