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Do excess franking credits go in the franking account?

Newbie

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Devotee Registered Tax Practitioner

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So, the excess franking offset of $2,566 shouldn't be reported as a debit in the franking account?

 

No  -  you will not find that on the debits list.

https://www.ato.gov.au/law/view/document?DocID=PAC%2F19970038%2F205-30&PiT=99991231235958

 

 

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Devotee Registered Tax Practitioner

Replies 4

Perhaps an example might make the question clearer.

 

Newbie

Replies 3

TAXABLE INCOME 2020       45,840.53
   
tax 27.5%  $   12,606.00
   
Excess franking offset  
Franking credits     15,172.00 
 Less tax payable-$ 12,606.00 $     2,566.00
Should an excess franking credit of $2,566 go in the franking account?  
Tax loss 2020 year  $     9,330.00

Devotee Registered Tax Practitioner

Replies 2

Should an excess franking credit of $2,566 go in the franking account?

 

If a company receives dividends with $ 15,172 franking credits, then $ 15,172 is a credit in the franking account.

 

 

 

Newbie

Replies 1

So, the excess franking offset of $2,566 shouldn't be reported as a debit in the franking account?

Most helpful response

Devotee Registered Tax Practitioner

Replies 0

So, the excess franking offset of $2,566 shouldn't be reported as a debit in the franking account?

 

No  -  you will not find that on the debits list.

https://www.ato.gov.au/law/view/document?DocID=PAC%2F19970038%2F205-30&PiT=99991231235958

 

 

Newbie

Replies 0

TAXABLE INCOME 2020      45,840.53
   
tax 27.5% $     12,606.00
   
Excess franking offset  
Franking credits     15,172.00 
Less tax payable-$ 12,606.00$       2,566.00
   
Tax loss 2020 year $       9,330.00