If you receive from a New Zealand company a dividend with Australian franking credits attached to it you should receive a distribution statement for that dividend as well. The company is required to provide you with a distribution statement on or before the day the dividend is paid (if it is a public company) or within four months of the end of the company's income year (if it is a private company).
The distribution statement will set out at least the following information - the:
- name of the company making the distribution
- date on which the distribution was made
- amount of the distribution
- amount of franking credits allocated to the distribution
- franking percentage for the distribution
- name and address of the shareholder to whom the distribution is paid
- amount, if any, deducted by way of New Zealand non-resident withholding tax
- currency in which all amounts are expressed
- exchange rate on the day the decision to pay the distribution was made
- amount of any New Zealand supplementary dividend paid in connection with the dividend.
The distribution statement may also state the amount of New Zealand imputation credits attached to the dividend.
Australian residents cannot claim New Zealand imputation credits.
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When you are not entitled to claim a franking tax offset
Companies are not entitled to a refund of any excess franking credits unless they are certain endorsed income tax exempt charities (ITECs) and deductible gift recipients (DGRs), or life insurance companies to the extent the franking credits relate to distributions paid on shares and other membership interests held on behalf of policy-holders.
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Last modified: 21 May 2013QC 17566