If a private company has accumulated franking credits at a tax rate of 30% and then wants to issue franked dividends after the company tax rate drops to 28%, can it still frank the dividends at 30% since it has sufficient credits available?
If not, how can the shareholder (who controls the company) get access to the remaining 2% of franking credits, or do they effectively become lost (ie. trapped in the company)?
GP
If not, how can the shareholder (who controls the company) get access to the remaining 2% of franking credits, or do they effectively become lost (ie. trapped in the company)?
GP