• L Dividend franking credit

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    Show at L the total amount of the franking credits attached to franked dividends and franked non-share dividends that the fund received and for which the fund is entitled to franking credits tax offset.

    Do not show franking credits at L if the fund did not satisfy the holding period rule and the related payments rule in relation to the dividend.

    Franking credits reduce the amount of tax that the fund owes. Franking credits in excess of the tax payable will be refunded if the fund is a complying superannuation fund, complying ADF or PST.

    Show the amount of franking credits attached to franked dividends and franked non-share dividends that the fund received at:

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

    If the franking credit is attached to a franked dividend that is non-arm's length income of a complying superannuation fund, complying ADF or a PST, include the franking credit (along with the dividend amount) at U Net non-arm’s length income. Do not show the franking credit at L.

    Do not show at L any franking credits attached to assessable dividends received directly or indirectly from a New Zealand franking company. Show these at E Australian franking credits from a New Zealand company.

    If you elect to include the franked part of a distribution from a PDF in the fund’s assessable income, you must also include the franking credit on the distribution (worked out in accordance with Subdivision 207-A of the ITAA 1997) in the fund’s assessable income. Show the franking credit at L and the franked part of the distribution at K. If you did not make such an election do not show the franking credit at L or the franked part of the distribution at K.

    If the fund qualifies for a venture capital franking credits tax offset, a venture capital credit on a distribution from a PDF is not included in the assessable income of the fund. Therefore, do no include any amount for the credit at L.

    Last modified: 02 Jun 2014QC 35420