WPN Withholding number DEFINITIONS Common term Definition Supplier The organisation sending the data to the Australian Taxation Office (ATO). Investment body An entity as defined section 202D (1) of of the Income Tax Assessment Act 1936 (ITAA 1936). Investment bodies can include financial institutions, government bodies or body corporates, solicitors, managers of unit trusts, companies and betting investment bodies. For a full list of investment bodies, refer to the Annual investment income report (AIIR) companion guide. Controlled foreign Income received from having a substantial interest in a foreign company (CFC) income company controlled by Australians. Franked distributions A franked distribution is a defined term in section 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997). If the company paying a dividend can frank the dividend and allocates a franking credit to the dividend then the dividend is a franked distribution. For example, if a company pays a dividend of $100 which is franked to 80% then the franked amount (also known as the franked dividend) is $80, the unfranked amount is $20 and the franking credit is $34 [rounded]. The franked distribution amount includes both the franked and unfranked amounts of the distribution and therefore the franked distribution amount is $100. A franked dividend is not defined within the law but is the term used to reflect that part of a dividend that has a franking credit and satisfies the formula; This formula delivers the franked part of the distribution as defined in section 976-1 of the ITAA 1997 i.e. the unfranked part of the distribution is the amount left after deducting the franked part of the distribution from the total distribution.
WPN Withholding number DEFINITIONS Common term Definition Supplier The organisation sending the data to the Australian Taxation Office (ATO). Investment body An entity as defined section 202D (1) of of the Income Tax Assessment Act 1936 (ITAA 1936). Investment bodies can include financial institutions, government bodies or body corporates, solicitors, managers of unit trusts, companies and betting investment bodies. For a full list of investment bodies, refer to the Annual investment income report (AIIR) companion guide. Controlled foreign company (CFC) income Income received from having a substantial interest in a foreign company controlled by Australians. Franked distributions A franked distribution is a defined term in section 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997). If the company paying a dividend can frank the dividend and allocates a franking credit to the dividend then the dividend is a franked distribution. For example, if a company pays a dividend of $100 which is franked to 80% then the franked amount (also known as the franked dividend) is $80, the unfranked amount is $20 and the franking credit is $34 [rounded]. The franked distribution amount includes both the franked and unfranked amounts of the distribution and therefore the franked distribution amount is $100. A franked dividend is not defined within the law but is the term used to reflect that part of a dividend that has a franking credit and satisfies the formula; This formula delivers the franked part of the distribution as defined in section 976-1 of the ITAA 1997 i.e. the unfranked part of the distribution is the amount left after deducting the franked part of the distribution from the total distribution.
20150622_Draft_Clean_AIIR_PC_spreadsheet_v4.0.1.docx