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• nCompanies should ensure that all dividends paidnto shareholders during the relevant franking period (generally the income year)nare franked to the same extent to avoid breaching the “benchmark rule”.
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• nLoans, payments and debts forgiven by privatencompanies to their shareholders and associates may give rise to unfrankedndividends that are assessable to the shareholders and their associates.nShareholders and entities should consider repaying loans and making payments onntime, or have appropriate loan agreements in place.
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• nCompanies should consider whether they havenundertaken eligible research and development (R&D) activities that may beneligible for the R&D tax incentive.
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• nCompanies may consider consolidating beforenyear-end to reduce compliance costs and take advantage of tax opportunitiesnavailable as a result of the consolidated group being treated as a singlenentity for tax purposes.
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Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.