Hi Paul, I have read your article on the possible change in the refunding of excess franking credit IF BS is elected. In particular your comment about EMTFs being trusts and all income is passed directly to unit holders.
Does this mean that a unit holder, or any trust recipient, will be able to claim a cash refund if the franking credits are in excess of the tax payable ?
A: Thanks for the question.
Yes – potentially. If their franking credits exceed their total tax payable, they will be eligible for a refund.
With the obvious proviso that this is what Mr Shorten wants to change, and it is not assessed on an “asset by asset basis” but rather on the taxpayers total tax payable offset by total franking credits.
Regards
