An investor
An investor will either recognize a capital gain or loss when involved in shares buyback arrangements. In case of a capital gain, the gain is included in the investors’ assessable income and the entire amount taxed at the marginal rate of tax. In case of a capital loss, such amount is used to reduce a capital gain in the future, reducing the total tax on the accessible income. Conversely, an investor is taxed depending on the nature of dividends received. Besides, such taxation is influenced by whether the paying company is a resident or not. Fully franked means the company pays for the entire tax on the dividend while partially franked an investor pays part of the tax on the dividend. However, in unfranked circumstances, there are no attached tax credits on the dividends