Franked dividends paid to shareholders could be disallowed by the Tax Office under the government’s proposed crackdown on capital raisings and share buybacks.
Banks, investment managers and self-managed superannuation funds have warned that a wide range of franked dividends paid to shareholders could be disallowed by the Australian Taxation Office under the Albanese government’s crackdown on capital raisings and share buybacks.
“Small to mid-cap Australian companies... are likely to be unfairly impacted,” Naos managing director Sebastian Evans said. The Australian Banking Association said in a submission it accepted that capital raisings should not be undertaken for the sole purpose of funding the distribution of franking credits.
“The reinvestment of company profits and the raising of capital to pay dividends, for many companies, is merely prudent cash flow management and has nothing to do with tax avoidance or the manipulation of the franking system,” SMSF Association chief executive Peter Burgess said.“The raising of capital simply provides liquidity from previously earned profits enabling a dividend to be paid from those profits.
Separately, the government in the October budget proposed closing a loophole used by some of Australia’s largest companies to
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Labor tax cut could fuel delivery of 150,000 apartmentsA tax break on foreign investment in build-to-rent housing could boost the number of new apartments threefold over the next decade and ease the national rental crisis, according to the property sector.
Read more »
Small businesses offered tax breaks for going green in federal budget – as it happenedAustralia news live: AMA calls for budget tax on sugary drinks in battle to curb obesity; severe weather warnings for NSW
Read more »
Phasing out property tax breaks could save $74b but it also could create 'significant economic shock'The Parliamentary Budget Office warns phasing out property tax breaks may 'trigger a significant economic shock'. That's why next week's budget is more focused on increasing the supply of housing rather than trying to make housing affordable by reducing house prices.
Read more »
King Charles urged to push for breakup of UK’s ‘network of satellite tax havens’Tax Justice Network says monarch can lead push to revamp laws allowing ‘industrial scale avoidance’ totalling £152bn a year
Read more »
Five people killed in south-east Texas shootingFour pronounced dead at Cleveland house and fifth died in hospital, sheriff’s office says
Read more »
Are Aussie banks a bargain buy? It depends who you askThe country’s four largest lenders have all underperformed the ASX200 in the past year, due largely to two factors: interest rates and the spectre of bad debts.
Read more »