How does it work?

Generally, a NZ company that chooses to use the Trans-Tasman imputation rules will be subject to the existing Australian imputation rules in the same way as they apply to an Australian company. However, there are special rules for a NZ company to ensure the Australian imputation rules operate appropriately and to preserve the integrity of the Australian imputation system. These rules relate to:

  • how a NZ company may enter the Australian imputation system
  • revocation of the franking choice by the NZ company and cancellation of the franking choice by the Australian Commissioner of Taxation
  • franking accounts of a NZ franking company
  • franking distributions of a NZ franking company
  • transfer of franking credits and debits where a group includes a non-Tasman company
  • effects of a supplementary dividend from a NZ franking company
  • rules about exempting entities
  • joint and several liability for a NZ company's unpaid franking liabilities.
    Last modified: 07 Oct 2015QC 16903