Technical Update:

Investors denied tax benefit of franked dividends received under 'dividend washing' arrangements - the ATO is offering nil penalties for voluntary disclosure

15 April 2014

Under a two pronged approach to deny the benefit of dividend/distribution washing, exposure draft legislation and a draft taxation determination have been released, which propose to deny franking credit offsets for investors that have received two franked dividends in respect of what is, economically, one parcel of shares.