Which of the following statement is incorrect? Companies are not entitled to a general discount on their capital gains A company is a Base Rate Entity (BRE) if its turnover is less than $50 million and its passive income is not more than 80% w Excessive remuneration paid to a relative of the director can be treated as deemed dividend under Division 7A. This dividend will be treated as an unranked dividend. The purpose of franking accounting is to allow companies to calculate whether they can attach more credits than tax already paid on that income