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SMEs told to pay out dividends now

Many small-to-medium enterprises and their shareholders will pay more tax as the corporate rate drops to 27.5 per cent because of Australia's idiosyncratic dividend imputation system, experts say.

SMEs told to pay out dividends now
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The perverse outcome arises because companies will have paid tax on profits at a rate of 30 per cent for the years before 2016-17 but will only be able frank dividends at the lower rate of 27.5 per cent if they are paid out after 1 July, 2016.

Read the full article on the Australian Financial Review.

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