A client will wind down its operations and lodge a final tax return in 2022 Financial year.
Operations will cease about September Quarter.
There will be tax payable, the extent of tax due for 2022, can a franked dividend be paid in September?
Currently, there are no credits available in the franking account balance.
Or do I need to wait til 30 June to declare and pay?
A client will wind down its operations and lodge a final tax return in 2022 Financial year.
Operations will cease about September Quarter.
There will be tax payable, the extent of tax due for 2022, can a franked dividend be paid in September?
Currently, there are no credits available in the franking account balance.
Or do I need to wait til 30 June to declare and pay?
Company can frank dividends to the extent that the franking account
will have a balance = 0 or more by 30 June of the year in which the dividend is paid.
This means that franking is OK as long as enough tax is paid during the year to cover the franking.
A client will wind down its operations and lodge a final tax return in 2022 Financial year.
Operations will cease about September Quarter.
There will be tax payable, the extent of tax due for 2022, can a franked dividend be paid in September?
Currently, there are no credits available in the franking account balance.
Or do I need to wait til 30 June to declare and pay?
Company can frank dividends to the extent that the franking account
will have a balance = 0 or more by 30 June of the year in which the dividend is paid.
This means that franking is OK as long as enough tax is paid during the year to cover the franking.
Thanks for that.
Im more specifically asking
can I physically pay a franked dividend (franking credits upto the estimated tax for 2022*) in the tax period ie pay it in Nov 21, when the tax is physically paid after 30 June 2021
*i say estimated, its actual as its final year of trade
Im more specifically asking
can I physically pay a franked dividend (franking credits upto the estimated tax for 2022*) in the tax period ie pay it in Nov 21,
when the tax is physically paid after 30 June 2021
Yes, just don't have the franking account overdrawn at year end.
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