Paying dividends and other distributions

Franked distributions can be made by companies and other corporate tax entities that are Australian residents for tax purposes. New Zealand companies can also choose to enter the Australian imputation system.

The most common frankable distribution is a dividend paid to company shareholders.

The corporate tax entity uses a franking account to keep track of the amount of tax paid that it can pass on to its members as a franking credit attached to a distribution.

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Last modified: 11 Nov 2015QC 47301