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Singapore switched from the Imputation Tax System to the One Tier Corporate Tax System in 2003. Ignoring the 5-year tax credit grace period, answer the

Singapore switched from the Imputation Tax System to the One Tier Corporate Tax System in 2003. Ignoring the 5-year tax credit grace period, answer the following:

  1. Is dividend policy relevant under the imputation tax system? Which is better for shareholders: dividend payment or share repurchase?
  2. Is dividend policy relevant under the One Tier Corporate Tax System? Which is better for shareholders: dividend payment or share repurchase?

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Dividend Policy Relevance Yes the dividend policy is relevant under the Imputation Tax System1 This system eliminates the double taxation of cash payo... blur-text-image

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