How does a NZ resident company make a franking choice?

  • A NZ resident company must notify the Australian Commissioner of Taxation of the franking choice by lodging a Trans-Tasman imputation election form
  • The notice must be lodged with the Commissioner at least one month before a NZ company makes any franked distributions. For example, a NZ company must lodge the notification at least on or before 1 September 2012 if it wishes to start franking distributions from 1 October 2012.
  • Generally, the choice comes into force at the start of the company's income year in which the notice is given to the Commissioner until it is revoked by the NZ company or cancelled by the Commissioner. This will allow credits to arise in the franking account from the start of the income year.
  • If a NZ company does not have an Australian tax file number (TFN) this will be issued by the Australian Taxation Office once a franking choice has been made.
    Last modified: 07 Oct 2015QC 16903