Yes. In certain limited circumstances a corporate tax entity may apply in writing to the Commissioner to allow it to vary the franking credit allocated on a distribution by amending the distribution statement.
Because the distribution statement provides evidence of the amount of franking credits allocated on a distribution it is expected that the Commissioner will only exercise his discretion where the amount of franking credit stated on the distribution statement was not intended.
In exercising his discretion the Commissioner must consider the following matters:
- the number of recipients that will receive an amended distribution statement
- whether the last day for lodging the recipients' tax return for the year of income in which the distribution was made has passed
- whether there would be any change in the recipients' withholding tax liability as a result of changing the franking credit on the distribution
- whether amending the distribution statement will result in the entity breaching the benchmark rule or the anti-streaming rules
- whether amending the distribution statement will result in a new benchmark being set for the franking period in which the distribution was made, and
- any other factors considered relevant by the Commissioner.
Example 5: Changing the amount of franking credits allocated on a distribution
Boyes Pty Ltd has four shareholders. On 31 July 2002 it paid a franked distribution of $350 to each of its shareholders. The franking credit allocated to each of these distributions was intended to be $150, that is, they were all intended to be fully franked distributions. Distribution statements were issued to all four shareholders. However, because of a transposition error, one of the shareholders' distribution statements showed that franking credits of only $105 was allocated to the distribution, making the distribution partly franked.
In this situation, Boyes Pty Ltd could apply to the Commissioner to allow it to change the franking credit allocated on this shareholder's distribution by amending its distribution statement. In making this application, Boyes Pty Ltd must include all information relevant to the matters that must be considered by the Commissioner.