Franking credits

Situations that attract our attention include:

• entities incorrectly claiming franking credits or not applying appropriate governance to their franking credit balance (see Imputation and Integrity rules)
• a substantial increase in, or refund of, franking credits
• arrangements to access franking credits through an entity with a concessional tax rate, such as a superannuation fund.

For information on structured arrangements, see TA 2018/1 Structured arrangements that provide imputation benefits on shares acquired on a limited risk basis around ex-dividend dates.