Company: GVH
Filing Date: 2025-06-27
Form Type: 424B4
Source: 0001213900-25-058674
Chunk: 100

Company: Globavend Holdings Ltd
Filing Date: 2025-06-27
Form: 424B4
Chunk 100
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 will allow the Australian Resident Holders that are companies to pass on
the franking credits to its investor(s) on the subsequent payment of franked dividends.

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Excess franking credits received
by the company shareholder will not give rise to a refund entitlement for a company but may be converted into carry forward tax losses
instead. This is subject to specific rules on how the carry forward tax loss is calculated and utilized in future years. For completeness,
this tax loss cannot be carried back under the loss carry back tax offset rules introduced in the 2020-21 Federal Budget.

Trusts and partnerships

Australian Resident Holders
who are trustees (other than trustees of complying superannuation entities, which are dealt with above) or partnerships are also required
to include any dividends and any franking credits in calculating the net income of the trust or partnership. Where a fully franked or
partially franked dividend is received, the relevant beneficiary or partner may be entitled to a tax offset equal to the beneficiary’s
or partner’s share of the net income of the trust or partnership.

To the extent that the dividend
is unfranked, an Australian trustee (other than trustees of complying superannuation entities) or partnerships, will be required to include
the unfranked dividend in the net income of the trust or partnership. The relevant beneficiary will be taxed at the relevant prevailing
tax rate on their share of the net income of the trust or partnership (with no tax offset).

Qualified Persons

The benefit of franking credits
can be denied where an Australian Resident Holder is not a ‘qualified person’ in which case the Holder will not be able to
include an amount for the franking credits in their assessable income and will not be entitled to a tax offset.

Broadly, to be a qualified
person, a shareholder must satisfy the holding period rule and, if necessary, the related payment rule. The holding period rule requires
a shareholder to hold the shares ‘at risk’ for at least 45 days continuously during the qualification period — starting
from the day after acquiring the shares and ending 45 days after the shares become ex-dividend — in order to
qualify for franking benefits.

This holding period rule is
subject to certain exceptions, including where the total franking offsets of an individual in a year of income do not exceed A$5,000.

Whether you are qualified person
is a complex tax issue which requires analysis based on each shareholder’s individual