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  • Structured arrangements Taxpayer Alert issued

    We are currently reviewing certain structured arrangements involving the transfer of shares in the period around the shares’ ex-dividend date.

    In February we issued the Taxpayer Alert TA 2018/1 Structured arrangements that provide imputation benefits on shares acquired on a limited risk basis around ex-dividend dates to notify the market of our concerns with these highly contrived arrangements.

    We are concerned these arrangements involve taxpayers inappropriately receiving franking credits in breach of rules designed to maintain the integrity of the imputation system.

    We are active in ensuring compliance, and are working to help prevent the proliferation of such arrangements.

    What are the arrangements of concern?

    The arrangements typically involve an Australian taxpayer with an existing investment in Australian shares acquiring an additional parcel of the same shares. The additional shares are held for a short period over the ex-dividend date.

    What you need to do

    If you have, or are contemplating entering into, an arrangement of this type we encourage you to:

    See also:

    • Taxpayer Alert TA 2018/1 Structured arrangements that provide imputation benefits on shares acquired on a limited risk basis around ex-dividend dates
      Last modified: 12 Mar 2018QC 54771