Income Tax for Companies

This product is specific to Australian Taxation

Income tax compliance for companies is an ever-increasing area of complexity for practitioners working with these clients, as well as those working for employers with responsibility for completing the income tax returns themselves.

This comprehensive learning manual is designed to help tax practitioners to keep up to date with the changing tax regulations as they relate to the reporting of company income, losses, deductions and preparation of the franking account.

Key topics:

• Types of companies for income tax purposes
• How companies are taxed
• Tax reconciliations - reconciling accounting net profit to taxable income
• Tax losses of companies
• Debt v equity rules
• Research and development concessions available to companies
• Depreciation of SBE's and large business taxpayers
• Taxation of dividends, including deemed dividends
• Division 7A
• Distributions of profits to corporate beneficiaries and the implications of Bendel's case
• Preparing a franking account
• Frankable v unfrankable distributions
• Calculating the franking credits and franking percentage
• Distribution statements
• The benchmark rule
• Franking periods
• Consequences of breaching the benchmark rule - underfranking and overfranking
• Franking deficit tax and excessive overfranking
• Anti-avoidance and integrity measures, including the disclosure rule and streaming distributions