Question 2

Beta Ltd (not a Base Rate Entity) has the following transactions during the year ending 30 June 2022:

15 July 2021: Paid a $700,000 ordinary dividend with a franking credit of $180,000.

31 July 2021: Paid a PAYG Instalment of $200,000.

10 August 2021: Received a dividend of $140,000 fully franked.

30 September 2021: Paid a PAYG Instalment of $400,000

21 November 2021: Paid a fully franked dividend of $1,400,000.

31 January 2022: Paid a dividend of $350,000 with a franking credit of $75,000.

31 March 2022: Received a Tax Refund of $200,000 from the Australian taxation Office.

Required

Showing ALL your calculations and referring to ALL relevant sections in the Income Tax Assessment Act 1997, draw up a Franking Account for Beta Limited for the income Year ending 30 June 2022. Your answer should include references to Overfranking Tax, Penalty Franking Debits and Franking Deficits Tax if applicable. Please note that marks will be deducted for any calculations or section references that are not included in your answer