Question

Gold Pty Ltd is an Australian resident private company. All the shares in Gold Pty Ltd are owned by Johnny Gold.

During the year ended 30 June 2019 the following events occurred in relation to Gold Pty Ltd:

1 July 2018​Opening balance of franking account​$200,000

2 July 2018​Payment of dividend franked to 70%​$1,600,000

28 October 2018​Payment of income tax for Gold Pty Ltd​$600,000

26 November 2018​Receipt of dividend from another company

​franked to 80%​​$450,000

31 December 2018​Refund of income tax for Gold Pty Ltd​$750,000

22 February 2019​Receipt of dividend from another company

​franked to 50%​​$430,000

2 March 2019​Payment of dividend franked to 30%​$600,000

31 March 2019​Payment of income tax for Gold Pty Ltd​$250,000

2 April 2019​Payment of fully franked dividend​$700,000

4 April 2019​Payment of Goods & Services Tax​$50,000

30 June 2019​Payment of dividend franked to 40% ​$550,000

Using the information provided above, prepare the Franking Account for Gold Pty Ltd for the year ended 30 June 2019:

Required:

a) Calculate the over franking tax (if any) that Gold Pty Ltd is liable to pay ​

b) Calculate the franking deficit tax (if any) that Gold Pty Ltd is liable to pay

what input are you talking about i have posted all the question

can u please tell me what input is??

Answer 1

Gold Pty Ltd is an Australian resident private company. All the shares in Gold Pty Ltd are owned by Johnny Gold.	Companies listed on the Australian Securities Exchange (ASX) the tax rate is generally a flat 30%, and Hence Assuming tax rate is 30 % in case of comppany
During the year ended 30 June 2019 the following events occurred in relation to Gold Pty Ltd:
	Franked Dividend (A)	Franked fully/Partial (B)	Dividend Income   "(C') ((A/1-0.30)*B)	(D) Frank Credit ((C)*Corp. Tax)	Personal tax ((C)*Company Tax)	Income tax paid	Refund	Refund Received	Service tax Paid
1 July 2018​Opening balance of franking account​$200,000				200,000.00			(200,000.00)
				Opening Balance
2 July 2018​Payment of dividend franked to 70% ​$1,600,000	1,600,000.00	70%	1,600,000.00	480,000.00	480,000.00		-
28 October 2018​Payment of income tax for Gold Pty Ltd ​$600,000						600,000.00	(600,000.00)
26 November 2018​Receipt of dividend from another company	450,000.00	80%	514,285.71	154,285.71	154,285.71		-
​franked to 80%​​ $450,000							-	750,000.00
31 December 2018 ​Refund of income tax for Gold Pty Ltd​$ 750,000							-
22 February 2019 ​Receipt of dividend from another company							-
​franked to 50%​​$430,000	430,000.00	50%	307,142.86	92,142.86	92,142.86		-
2 March 2019​Payment of dividend franked to 30%​ $600,000	600,000.00	30%	257,142.86	77,142.86	77,142.86		-
31 March 2019​Payment of income tax for Gold Pty Ltd ​$250,000						250,000.00	(250,000.00)
2 April 2019​Payment of fully franked dividend ​$700,000	700,000.00	100%	1,000,000.00	300,000.00	300,000.00		-
4 April 2019​Payment of Goods & Services Tax ​$50,000							-		50,000.00
30 June 2019​Payment of dividend franked to 40% ​$550,000	550,000.00	40%	314,285.71	94,285.71	94,285.71		-
Using the information provided above, prepare the Franking Account for Gold Pty Ltd for the year ended 30 June 2019:	4,330,000.00		3,992,857.14	1,197,857.14	1,197,857.14	850,000.00	(1,050,000.00)
Required:
a) Calculate the over franking tax (if any) that Gold Pty Ltd is liable to pay (5 Marks)​						Computation of Income of Gold Pty Ltd
b) Calculate the franking deficit tax (if any) that Gold Pty Ltd is liable to pay (5 Marks)						Dividend Income	3,992,857.14
						Tax 30% Flat (Applicable)	1,197,857.14
						Less : Income tax paid	850,000.00
shares in Gold Pty Ltd are owned by Johnny Gold.						Less : Frank Credit avaible (Inc. Opening Balance)	1,397,857.14
						Refundable Frank Credit	(1,050,000.00)
franking account​$200,000
franking credits’. This is the amount of company tax that relates to the dividend.
Franking credit = (Dividend Amount ÷ (1 - Company Tax rate)) - Dividend Amount