Allow dividend to be franked

The Commissioner may alternatively decide that the private company may choose to frank the deemed dividend. If the private company does frank the deemed dividend, the private company's franking account will be debited.

The Commissioner's discretion to allow dividends to be franked would only apply where the dividend has been deemed to have been paid to a shareholder and not to an associate of a shareholder.

An amount included as if it was a dividend in the assessable income of an entity under Subdivision EA of Division 7A, is not frankable as the private company is not taken to pay the dividend in these circumstances.

    Last modified: 27 Jul 2016QC 19545