Infratil's Board determines dividends having regard to the overall financial position of Infratil, the total net surplus for the relevant period and the availability of imputation credits. Until 2018 dividends were fully imputed (ie to 28%), but the increasing portion of Infratil’s earnings now coming from offshore investments has restricted the availability of imputation credits (which are only created when companies pay corporate tax in New Zealand). Infratil undertook a survey of its shareholders and ascertained that a significant portion of them were comfortable with imputation of the dividends down to 20%. It is hoped that New Zealand sourced income rises with the purchase of Vodafone NZ and that this lifts the availability of Imputation credits to Infratil.
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