Checklist for users of the system
Before franking a distribution:
- Did you convert your franking account to a tax paid basis on 1 July 2002?
- Have you ensured you satisfy the Australian residency requirements prior to franking a distribution?
- Have you a written record of the decision to issue franked dividends?
- Have you set your benchmark franking percentage for the franking period?
- If this is a subsequent frankable distribution, have you franked at the benchmark rate for the entire franking period?
Before finalising your franking account:
- Have you issued a distribution statement?
- Does the distribution statement meet the legislated requirements?
- Are you liable to pay franking deficit tax?
- Have you under-franked or over-franked the distribution?
- Have you breached the benchmark rule?
- Do you need to lodge a franking account tax return?
Before lodging a franking account tax return:
- Are you lodging using the Tax Office-approved franking account tax return?
- If you have a franking deficit tax liability, and are paying by mail, have you attached a cheque for this amount to your return?