Which of the Following Statements Regarding the Tax Effect of Dividends

Multiple Choice

Which of the following statements regarding the tax effect of dividends is incorrect?

A) no tax- effect entry is required for entries eliminating dividend revenue on intragroup dividends
B) no tax is normally payable on the dividends received given the operation of the tax rebate
C) a parent entity which is a public company is entitled to a rebate of tax on dividends from a resident company subsidiary
D) a tax- effect entry is required for entries eliminating dividend revenue on intragroup dividends