- imputation system
- Formerly, the system in which the advance corporation tax (ACT) paid by a company making qualifying distributions was available to set against the gross corporation tax for the company. The shareholder receiving the dividend was treated as having suffered tax on the dividend and the tax credit was available to set against his or her own liability to tax. ACT was abolished with effect from 1 April 1999.
Accounting dictionary. 2014.
Look at other dictionaries:
imputation system — ➔ system * * * imputation system UK US noun [C] TAX ► a system in which shareholders who receive dividends (= part of the profit of a company) also receive a tax credit for taxes that the company paid: »Corporation tax is based on an imputation… … Financial and business terms
imputation system — A tax system operated in some jurisdictions (for example, in the UK until the abolition of advance corporation tax on 6 April 1999), which imputes or attributes to shareholders a credit for the tax suffered by the company on its income. This… … Law dictionary
imputation system — noun A method of taxation whereby some or all of the corporation tax on a company is offset by the income tax paid by shareholders on dividends • • • Main Entry: ↑impute … Useful english dictionary
imputation system — Formerly, the UK system in which a company making a qualifying distribution paid advance corporation tax on the dividend paid; this amount could then be set against the gross corporation tax for the accounting period. The shareholder receiving… … Big dictionary of business and management
imputation system — /ˌɪmpju: teɪʃ(ə)n ˌsɪstəm/ noun a system of taxation of dividends, where the company pays advance corporation tax on the dividends it pays to its shareholders, and the shareholders pay no tax on the dividends received, assuming that they pay tax… … Dictionary of banking and finance
system — sys‧tem [ˈsɪstm] noun [countable] an arrangement or organization of ideas, methods, or ways of working: • Deregulation has created worries about the stability of the country s financial system. • All staff will benefit from a well run… … Financial and business terms
Imputation tax system — Arrangement by which investors who receive a dividend also receive a tax credit for corporate taxes that the firm has paid. The New York Times Financial Glossary … Financial and business terms
imputation tax system — Arrangement by which investors who receive a dividend also receive a tax credit for corporate taxes that the firm has paid. Bloomberg Financial Dictionary … Financial and business terms
Dividend imputation — is a corporate tax system in which some or all of the tax paid by a company may be attributed, or imputed, to the shareholders by way of a tax credit to reduce the income tax payable on a distribution. In comparison to the classical system, it… … Wikipedia
classical system of corporation tax — A system of taxing companies in which the company is treated as a taxable entity separate from its own shareholders. The profits of companies under this system are therefore taxed twice, first when made by the company and again when distributed… … Big dictionary of business and management