to prevent double taxation, where an actual dividend is subsequently declared (called a later dividend), some or all of that dividend can be set off against a division 7a dividend previously assessed, but the company is not obligated to set off. the later dividend could be either fully or partly franked, as for any dividend. to the extent that it has been previously assessed it is tax-exempt, but the imputation credit component of the later dividend is assessable, and credit available. this means that the franking credit attached to the dividend is still available to the shareholder. if lower, the amount that is set off is not treating as a dividend.