• Important messages for late balancing corporate tax entities that elect to have their FDT liability determined on 30 June

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    A late balancing corporate tax entity has the option to choose to have its franking deficit tax liability, if any, determined on a 30 June basis, rather than at the end of its income year. For more information refer to the fact sheet. Simplified imputation: franking deficit tax liability for late balancing corporate tax entities.This fact sheet is available on our website.

    If a late balancing corporate tax entity makes this choice and it has a debit balance in its franking account on 30 June 2003, then it will be required to lodge a Franking account tax return 2003, to account for this franking deficit tax liability, on or before 31 July 2003. This same entity will also be required to lodge a subsequent franking account tax return within one month after the end of its income year if it has to:

    • account for any over-franking tax liability, and/or
    • disclose any significant variation in its benchmark franking percentage between franking periods.

    The over-franking tax liability, if any, must be paid by the last day of the month immediately following the end of the income year. For more information on over-franking tax and the disclosure obligation seeOver-franking tax andSection C Significant variation in benchmark franking percentage.

    Last modified: 18 Sep 2008QC 16745