This week, Mena and I discuss how franking credits (aka imputation credits) work and how integral they are when it comes to tax planning including:
· Their aim is to avoids double taxation.
· Provides you with a tax offset so it’s important to keep track of your Company’s franking account.
· Sometimes paying tax sooner, so you can pay a franked dividend can reduce your overall tax.
· Distribution/dividend strategy - streaming franking credits to beneficiaries or shareholders with low taxable income and to receive a tax refund.
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