Simple Invest 360: Carried-forward Franking Credits for Companies

Introduction:

Excess Franking Credits are not refundable for companies. However, the company can convert the excess franking credits to an equivalent tax loss. This converted tax loss can then be carried forward as a tax loss which can be utilised in a future year against any taxable profit.

Note: BGL does not provide tax advice. Please refer to ATO for details.

At the moment, Simple Invest 360 does not automatically convert the excess franking credits to a carry-forward tax loss. This can be catered for manually in the software. Please follow the below steps to adjust the carry-forward tax losses.

BGL will automate this calculation in a future release.

Instructions:

Navigate to Compliance from the Main Toolbar
Select Period Compliance

To view/adjust Prior Year Losses, including Carried Forward Franking Credits, select View Losses.

On the screen prompted, users can include the amount for Carried Forward Franking Credits under the Carried Forward Tax Losses. 

Note

1. If there has already been a Carried Forward Tax Loss amount showing in the field, users need to add the excess franking credits to this amount. 

Example:

A company had $1,000 carried forward tax losses recorded here previously. For FY 2019-20, the company has newly generated another $500 franking credits to carry forward. Users will need to update the Carried Forward Tax Losses to $1,500 ($1,000 + $500).

2. It is recommended that users complete this procedure after Close Period, so that the Tax Losses would be updated for the right period.