Franking Credit
Franking Credit:
A type of tax credit found in countries such as Australia that allows domestic companies to pass through taxes that have already been paid on corporate profits. The investor receiving stock dividends will also receive a quantity of franking credits in proportion to the overall tax rate of the company per dollar in profits.
When filing personal income taxes, the investor will record as income both the amount of the dividend and the amount of the franking credit; however, the franking credits can be deducted from the total tax due. If the investor has franking credits remaining and no more income tax due, franking credits can be returned as a tax refund to the investor.
Blue Chip Company
A blue chip company is a nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services.
Fixed trusts
The beneficiaries' entitlement to the trust property or income (or both), and the way in which this is fulfilled, is fixed by the trust deed. The trustee has no discretion to alter the prescribed entitlement of the beneficiaries. Very few trusts (if any) are wholly fixed because the trustee generally has some element of discretion.l
Discretionary trusts
The trustee has a discretion as to how the income or capital (or both) is distributed between the beneficiaries or different classes of beneficiaries (also referred to as objects). A beneficiary of a discretionary trust has no beneficial interest in the trust property or income until the trustee exercises a discretion under the deed to distribute income or capital in the beneficiary's favour.
Unit trusts
These are trusts where the interests of beneficiaries are denominated by units, which can often be bought and sold in a way similar to trading in shares in a company. Unit trusts are used in many commercial arrangements, including managed investment schemes.
GST
generally, businesses registered for GST will
A type of tax credit found in countries such as Australia that allows domestic companies to pass through taxes that have already been paid on corporate profits. The investor receiving stock dividends will also receive a quantity of franking credits in proportion to the overall tax rate of the company per dollar in profits.
When filing personal income taxes, the investor will record as income both the amount of the dividend and the amount of the franking credit; however, the franking credits can be deducted from the total tax due. If the investor has franking credits remaining and no more income tax due, franking credits can be returned as a tax refund to the investor.
Blue Chip Company
A blue chip company is a nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services.
Fixed trusts
The beneficiaries' entitlement to the trust property or income (or both), and the way in which this is fulfilled, is fixed by the trust deed. The trustee has no discretion to alter the prescribed entitlement of the beneficiaries. Very few trusts (if any) are wholly fixed because the trustee generally has some element of discretion.l
Discretionary trusts
The trustee has a discretion as to how the income or capital (or both) is distributed between the beneficiaries or different classes of beneficiaries (also referred to as objects). A beneficiary of a discretionary trust has no beneficial interest in the trust property or income until the trustee exercises a discretion under the deed to distribute income or capital in the beneficiary's favour.
Unit trusts
These are trusts where the interests of beneficiaries are denominated by units, which can often be bought and sold in a way similar to trading in shares in a company. Unit trusts are used in many commercial arrangements, including managed investment schemes.
GST
generally, businesses registered for GST will