Each of parts (a) to (g) below contain separate statements that you are required to answer separately For each statement indicate whether it is TRUE or FALSE and briefly explain your reasons with reference to legislation, case law or rulings (as appropriate) If a private company makes a loan to an associate that remains outstanding after the lodgement date the payment is generally deemed to be a franked dividend which is why the franking account would be debited 2 marks A foreign resident shareholder of an Australian resident company will not be able to apply the franking credit to their income tax return which means they will have to pay tax according to the foreign resident tax table on the dividend income if they own Australian resident company shares 2 marks Before Jill and John purchased a rental property they created and signed a partnership agreement that specified the profits from the rental property would be distributed 50 to each of them after Jill is paid a partnership salary of $10,000 as she will be managing the rental property The property title shows ownership of 90 to Jill and 10 to John but the partnership agreement is legally binding and supersedes the ownership as per the property title

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 10, 2024

Each of parts (a) to (g) below contain separate statements that you are required to answer separately. For each statement indicate whether it is TRUE

Each of parts (a) to (g) below contain separate statements that you are required to answer separately. For each statement indicate whether it is TRUE or FALSE and briefly explain your reasons with reference to legislation, case law or rulings (as appropriate).

If a private company makes a loan to an associate that remains outstanding after the lodgement date the payment is generally deemed to be a franked dividend which is why the franking account would be debited.

[2 marks]

A foreign resident shareholder of an Australian resident company will not be able to apply the franking credit to their income tax return which means they will have to pay tax according to the foreign resident tax table on the dividend income if they own Australian resident company shares.

[2 marks]

Before Jill and John purchased a rental property they created and signed a partnership agreement that specified the profits from the rental property would be distributed 50% to each of them after Jill is paid a partnership salary of $10,000 as she will be managing the rental property. The property title shows ownership of 90% to Jill and 10% to John but the partnership agreement is legally binding and supersedes the ownership as per the property title.