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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 2004, then it will be required to lodge a Franking account tax return 2004, to account for this franking deficit tax liability, on or before 31 July 2004. 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 see Over-franking tax and Section C Significant variation in benchmark franking percentage in these instructions.
Last modified: 18 Sep 2008QC 17477