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P Trust distributions franking credit

Last updated 12 February 2019

Show at P the total amount of the fund’s share of franking credits from a franking entity received indirectly through a trust.

Do not show franking credits relating to franked dividends received indirectly through a trust if:

  • the franking credits were attributable to a distribution from a New Zealand franking company; if the fund received franking credits indirectly from a New Zealand franking company, see E Australian franking credits from a New Zealand company
  • the holding period rule and related payments rule were not satisfied in relation to the dividend
  • the fund’s share of net income from the trust includes dividends paid or credited by a company that has made an interposed entity election and FTDT has been paid; the dividend is excluded from assessable income under section 271-105 of Schedule 2F to the ITAA 1936 and a franking credit or tax offset cannot be claimed for any franking credit attached to that dividend
  • there is some other manipulation of the imputation system
  • the franked distribution from the trust is exempt income or non-assessable non-exempt income of the fund (other than because of certain provisions mentioned in section 207-110 of the ITAA 1997).

If the fund is entitled to a franking credits tax offset, show the fund’s share of the franking credits attached to such franked distributions at:

  • E1 Complying fund's franking credits tax offset item 12 if the fundis a complying superannuation fund, complying ADF or PST, or
  • C2 Rebates and tax offsets item 12 if the fund is a non-complying superannuation fund or non-complying ADF.

If the fund is not entitled to a franking credits tax offset, do not show the franking credit attached to the dividend anywhere in the fund tax return.

QC35420