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 a franking credits tax offset.
Do not show franking credits at L if:
- the fund did not satisfy the holding period rule or the related payments rule in relation to the dividend
- the dividend washing integrity rule applies, or
- there is some other manipulation of the imputation system. The Commissioner may make a determination to deny imputation benefits where you have entered into a scheme for the purpose of obtaining franking credit benefits.
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 PST, do not show the franking credit at L. Include the franking credit (and the dividend amount) at U Net non-arm’s length income.
Do not show at L franking credits attached to assessable dividends received directly or indirectly from a New Zealand franking company. Include 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 elect to include the franked part of a distribution from a PDF in the fund’s assessable income, 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, do not include any amount for the credit at L, as a venture capital credit on a distribution from a PDF is not included in the assessable income of the fund.
Last modified: 05 Nov 2014QC 40267