WebTASK 6 West Point Pty Ltd, an investment company, paid the following dividends to shareholders: Paid fully franked on 15 September 2024 $28,000 Paid fully franked on 15 March 2024 $42,000 Received Dividend from Canadian company 31/12/2024 $14,000 (Tax withheld $6,000) Paid unfranked dividend on 15 September 2024 (declared on 20 June … Web1 day ago · You also need to calculate the franking account balance as at 30 June 2024. 2) Smart Solutions Pty Ltd wishes to pay a final fully franked dividend of $40,000 on 30 June 2024. However, Julia and John are concerned about the franking account to go into deficit. Calculate and advise the maximum frankable distribution amounts that Smart …
Answered: Required Prepare the franking account… bartleby
WebFranking deficit tax Object (1) While recognising that an entity may anticipate * franking credits when * franking * distributions , the object of this section is to prevent those credits from being anticipated indefinitely by requiring the entity to reconcile its * franking account at certain times and levying tax if the account is in * deficit . gary hursh attorney
What is the purpose of a franking account? - KnowledgeBurrow
WebJun 2, 2024 · The consequences of having a deficit in the franking account may result in incurring a franking deficit tax, which is equal to the deficit within the balance. It is important to note that this is not a penalty. The tax will only be imposed if the deficit is over 10% of the total of the franking credits arising within the income year. Another ... WebThis preview shows page 315 - 317 out of 473 pages.. View full document. See Page 1 WebIn the above scenario, there is a franking debit at year end of $2.14. In simple terms, this means that the company has franked more dividends to its shareholders than the tax that it has paid. This is referred to as “over-franking”. Consequently, it will be liable to pay franking deficit tax (FDT) of $2.14. black stained concrete grey