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Both Andy and Barry are New Zealand tax residents. Andy's personal marginal tax rate is 10.5%. Barry's personal marginal tax rate is 33.0%. Andy has
Both Andy and Barry are New Zealand tax residents. Andy's personal marginal tax rate is 10.5%. Barry's personal marginal tax rate is 33.0%. Andy has received a dividend cheque from Company ABC paying a net dividend of 1,506.07 New Zealand dollars. Barry has also received a dividend cheque from Company ABC with a net dividend of 807.06 New Zealand dollars. Company ABC's marginal corporate tax rate is 28% and their dividends are fully imputed. Required: What would be the effective tax rate for Andy and Barry respectively for these dividend incomes? Please fill in the blanks below. Note: ignore withholding tax; effective tax rate = (Gross dividend - shareholder's income after all taxes) gross dividend Please enter your answer in percentage points in the format X.X. i.e. If your answer is 10.654%, ente 10.7 Andy's effective tax rate = % Barry's effective tax rate = %
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