Private ruling: Proposed payment of a franked dividend
Published: September 2014

Ruling: Q3: Is a distribution made to shareholders out of amounts transferred from 'equity account X' to retained earnings a frankable distribution for the purposes of subsection 202-40(1) of the ITAA 1997? The Commissioner has ruled | A3: Yes




Questions at issue: In order to protect the privacy and commercial in-confidence components of the private binding ruling the following summary is provided. | Question 1: Is 'equity account X' a share capital account for the purposes of subsection 975-300(1) of the Income Tax Assessment Act 1997 (ITAA 1997)? | Question 2: Is a distribution made to shareholders out of amounts transferred from 'equity account X' to retained earnings a dividend under subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936) paid out of profits derived by the company for the purposes of section 44 of the ITAA 1936?