Completing Label E in the company tax return

The ATO is now able to allow an FDT offset that is claimed at Label E - Franking deficit tax credit offset.

Prior to the law being enacted, the ATO was disallowing FDT offset amounts claimed by taxpayers. We may have contacted you or your client to discuss the disallowance of such claims.

Note: Affected taxpayers were not required to pay any debt that arose due to the disallowance of the FDT offset amount. Further, no penalties or general interest charge (GIC) applied in relation to the disallowance of any FDT offset.

Now that the legislation has been enacted, we are processing adjustments to allow the FDT offset that your client claimed. Any entitlement to interest on overpayments will be issued to your client as a separate payment.

For further explanation on how to calculate the amount that can be claimed as an FDT offset for the income year refer to the fact sheets Simplified imputation - franking deficit tax offset and Simplified imputation - FDT offset for late balancers which can be found in the Simplified imputation area of the Tax Office website.

    Last modified: 04 Nov 2015QC 17305