COVID-19: Franking credit planning opportunity

Tim Lynch and Simon Croese discuss how businesses could potentially quarantine losses to preserve frankable profits.

With the COVID-19 pandemic negatively impacting the profitability of so many business, the payment of dividends by companies in the short term is something that many directors may feel they can ill afford to do.This said, there may be steps that directors can take now to protect a company’s ability to pay franked dividends in the future, when the current uncertainty subsides and confidence is restored.  These steps apply to companies making current year losses and involve “quarantining” ...

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Authors: Tim Lynch, Simon Croese

Published Date: 21 April 2020