One of the dividend taxation system that was implemented by countries around the world is Imputation taxation system. Consider a firm in Australia earns a pre-tax profit of AUD10 per share. It pays a corporate tax of AUD3 per share (30% tax rate) in taxes. The firm pays the remaining AUD7 in dividends to shareholder in 30% tax bracket. Calculate the amount of tax paid by the shareholders under the imputation tax system