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AmyD(Initiate)Initiate
7 July 2023

Company only operated for one year and is closing its doors / de-registering.

Company made profit in 2023.

I am issuing an unfranked dividend (no tax paid last year) to clear out the equity in the company - No other debts or assets - only 2023 profit in balance sheet.

As the company tax wont be paid till 2024 fin year, how do I claim the franking credit available on the 2023 tax paid as the company wont be lodging at 2024 tax return as the company is closing down 30/06/2023.

So current situation is the sole shareholder will pay tax on dividend (unfranked) but the company will also be paying tax. So how do I get the franking credit back so tax isnt paid twice? Is there such as thing as a Franking credit refund and if so can I apply for it?


1,347 views
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1,347 views
1 replies

Most helpful response

Most helpful reply

AriATO(Community Support)Community Support
11 July 2023

Hi @AmyD


Winding up a company is a bit tricky. You're right that unfranked dividends don't carry tax credits because the company hasn't paid tax on the amounts. The shareholder will need to add the amount to their income and they'll pay tax on it. A reason a company might pay unfranked dividends could be because the income wasn't assessable. It might be best to get advice from a tax professional before paying any dividends to see what is the best way to do this. Your franking account won't have any credits if no tax has been paid or if you haven't paid a PAYG instalment.


In case you're not aware, before you deregister your company, you'd have to complete all your lodgments and wind up your tax affairs. If you deregister first, you won't have access to your tax records.

All replies

Most helpful reply

AriATO(Community Support)Community Support
11 July 2023

Hi @AmyD


Winding up a company is a bit tricky. You're right that unfranked dividends don't carry tax credits because the company hasn't paid tax on the amounts. The shareholder will need to add the amount to their income and they'll pay tax on it. A reason a company might pay unfranked dividends could be because the income wasn't assessable. It might be best to get advice from a tax professional before paying any dividends to see what is the best way to do this. Your franking account won't have any credits if no tax has been paid or if you haven't paid a PAYG instalment.


In case you're not aware, before you deregister your company, you'd have to complete all your lodgments and wind up your tax affairs. If you deregister first, you won't have access to your tax records.

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