Cima E1 Exam Question No 11

Question No 11:

An imputation system of corporate income tax means?

A: All the underlying corporate income tax on the dividend distribution is passed as a
credit to the shareholders
B: The organisation pays corporate income tax on its profi ts and the shareholder pays
income tax on the dividend received
C: Withholding tax paid on dividends is passed as a credit to shareholders
D: A percentage of the underlying tax is passed as a credit to shareholders

Answer: A