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  • Taxation implications

    Attention

    Warning:

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

    End of attention

    If you are paid or credited dividends, you are required to include the following amounts in assessable income on your tax return:

    • unfranked amounts
    • franked amounts
    • imputation credits.

    We show you below how John Citizen would complete item 10 on his tax return, using the figures in the example.

    You can see on the O.P.Q. statement that John had no TFN amount deducted from the dividends he was paid or credited. Where a resident shareholder does not provide an Australian company with their tax file number (TFN), the company is required to deduct tax from the unfranked amount of any dividend at the highest income tax rate for individuals (47 per cent) plus Medicare levy (1.5 per cent)-a total rate for 1999-2000 of 48.5 per cent. As John advised O.P.Q. Ltd of his TFN, no TFN amount was deducted.

    If John had not advised O.P.Q. Ltd of his TFN, a TFN amount would have been deducted from the unfranked amount of the dividend. John would have shown this amount on his tax return at V, item 10. A credit for the TFN amount deducted would then be allowed in John's tax assessment.

    If John received more than one dividend statement during the income year he would need to show the total amounts at S, T, U and V of item 10 on his 1999-2000 tax return.

    Last modified: 23 Dec 2019QC 16138