The relevant sections which may apply to a resident shareholder on receipt of a dividend include. a. S.44 ITAA 1936 which includes in the taxpayer's assessable incoma, dividends paid by a company out of profits from any source b S. 207-20(1) of the ITAA 1997 which includes the amount of the franking credit in the shareholder's asseswable income c 5. 207.20(2) of the ITAA 1997 which entitles the shareholder to a tax offset for the income year in which the distribution is made equal to the franking credit d All of the above