The summary below compares the taxation of a subsidiary corporation to that of a branch. The financial period for both entities is assumed to be 1 January 1993 to 31 December 1993. Net income after taxes is assumed to be distributed on 1 March 1994.
Parent Does
Subsidiary Parent Receives Not Receive
Branch Imputation Credit* Imputation
Credit
FIM FIM FIM
Income before taxes 100.00 100.00 100.00
Tax at 25% ( 25.00) ( 25.00) ( 25.00)
Net income after taxes 75.00 75.00 75.00
Imputation credit, if
applicable, 5/16 x 1/3 x
cash dividend - 7.81 -
75.00 82.81 
