Imputation tax system of new zealand

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John holds 100 shares of AMB New Zealand. AMB just announced a pre-tax annual profit of $10 per share. The company maintains an 80% dividend payout policy and faces a corporate tax rate of 28%. John's marginal personal tax rate is30%. Assume all dividends paid by AMB are fully imputed under the imputation tax system of New Zealand, how much extra tax John needs to pay at the personal level on dividends he received from AMB?

Reference no: EM132398301

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