Definitions for "Imputation Credits"
The tax credits passed on to a shareholder who receives a franked dividend. Under provisions of the Income Tax Assessment Act, imputation credits entitle investors to a rebate for tax already paid by an Australian company. See Dividend Imputation.
Imputation credits represent tax paid by the Trust. By imputing dividends, the tax paid by the Trust effectively flows through to Unit Holders. New Zealand resident Unit Holders may then offset these credits against their personal tax liability.
Taxation credits shareholders may be entitled to when they receive franked dividends.