Hi all,
I am trying to work out my franking account, does anyone know if TFN withholding will form part of the franking account for a company?
Thank you
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if TFN withholding will form part of the franking account for a company?
No, franking account is made up of income tax paid to the ATO after tax return is lodged.
All replies
if TFN withholding will form part of the franking account for a company?
No, franking account is made up of income tax paid to the ATO after tax return is lodged.
Thanks.
No - TFN tax is a refundable credit.
Thanks
I have received an update from ATO on this topic. When a company has an amount withheld from interest it receives because no Tax File Number (TFN) was provided, that amount creates a tax credit.
If TFN is used to reduce the tax the company owes, it counts as a payment of income tax (under Subsection 205-20(3)). This means it will create a franking credit (under Subsection 205-15(1)).
Thus TFN withholding will form part of Franking Account when the return is lodged.
Please refer to following link for this.
https://community.ato.gov.au/s/question/a0JRF000004RXDh2AO/p00408672
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