Question: Briefly define and differentiate imputation tax and classical tax systems. Explain how the imputation tax system works in Australia and how the classical tax system

Briefly define and differentiate imputation tax and classical tax systems. Explain how the imputation tax system works in Australia and how the classical tax system works in USA by providing examples. Assume a 30 percent corporate tax rate and a 15 percent marginal tax rate for the investor in Australia and USA.

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DEFINITION IMPUTATION TAX SYSTEM The Australian dividend imputation system is a corporate tax system ... View full answer

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