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.
Incorrect claims, poor governance, increases in or refund of credits through a concessional tax rate raises concerns.