Distributions by a subsidiary member

Generally, a subsidiary member can frank frankable distributions in relation to:

  • disregarded employee shareholdings
  • non-share equity interests, and
  • membership interests held by a non-resident.

A frankable distribution made by a subsidiary member in relation to such shares or interests will be treated as a frankable distribution by the head company for the purposes of the imputation rules.

    Last modified: 09 Jul 2014QC 17505