After what was a two-year epic to reduce the corporate tax rate, involving multiple legislative amendments and extensive ATO guidance, do you fully understand how to work out whether a company is a base rate entity? What was formerly a mundane process of determining a company's tax rate and its franking rate is now more complicated, and there are a number of anomalous outcomes.
This session will cover the intricacies, nuances and subtleties of:
- the reduced corporate tax rate and franking rate, and the impact of legislated further changes
- the meaning of "base rate entity"?, "base rate entity passive income"? and "corporate tax rate for imputation purposes"?, and associated interpretive issues including LCR 2019/5
- the impact of the COVID-19 crisis on a company's tax rate and franking rate
- practical examples illustrating the complex treatment of amounts flowing through chains of trusts
- working out a company's franking rate, including dividend strategies.