The time for lodgment of a franking account tax return that accounts for a refund of income tax will depend upon whether a franking account tax return is outstanding at the time the refund is received. A franking account tax return is an 'outstanding return' at the time a refund of income tax is received if:
- you are required to lodge a franking account tax return(for example, because the entity's franking account was in deficit at the end of its income year or immediately before it ceased to be a franking entity)
- the time for lodging its franking account tax return has not yet passed, and
- the franking account tax return has not yet been lodged.
For certain late balancing corporate tax entities that elect to have their franking deficit tax liability determined on a 30 June basis a franking account tax return is outstanding if:
- you are required to lodge a franking account tax return(for example, because the entity's franking account was in deficit at the end of 30 June or immediately before it ceased to be a franking entity)
- the time for lodging its franking account tax return has not yet passed, and
- the franking account tax return has not yet been lodged.
If there is no outstanding return when a refund is received then the franking account tax return that accounts for the refund must be lodged and any franking deficit tax liability must be paid no more than 14 days after the refund has been received.
If there is an outstanding return when the refund is received then the outstanding return has to be lodged and any franking deficit tax or over-franking tax paid by the last day of the month following the end of the income year (or the 12 month period ending on 30 June).The refund may or may not be accounted for in the outstanding return. If it is not accounted for in that return then an additional return is required. This additional return has to be lodged (and the additional franking deficit tax has to be paid) within 14 days after the refund was received.