Period boxes 'or specify if part year or approved substitute period'

The Franking account tax return 2003 is for the period 1 July 2002 to 30 June 2003. Only complete the period boxes if:

• the entity is an early balancing corporate tax entity, or
• the entity is a late balancing entity and it has not elected to have its FDT liability determined on a 30 June basis, or
• the entity ceases to be a franking entity part way through its income year.

An early or late balancing corporate tax entity is one that has obtained the Commissioner's permission to use an income year that ends on a date other than 30 June. These companies are granted an approved substituted accounting period (SAP) which is in lieu of an income year ending on 30 June (the standard income year).

Generally, an early balancing corporate tax entity is one that has its 2002-03 income year end before 30 June 2003, while a late balancing corporate tax entity generally has its 2002-03 income year end after 30 June 2003.For more information on SAPs refer to Taxation Ruling IT 2360 - Income tax: substituted accounting periods.

Example 1 MHO Ltd has an approved substituted accounting period ending on 30 September 2003 in lieu of 30 June 2003.That is, MHO Ltd is a late balancing corporate tax entity. MHO Ltd does not elect to have its franking deficit tax liability determined on a 30 June basis. At the end of the day on 30 September 2003 MHO Ltd has a debit balance in its franking account and consequently it has a liability to pay franking deficit tax. MHO Ltd would complete the period boxes as follows:
Day	Month	Year	to	Day	Month	Year
01	10	2002		30	09	2003

Important messages for late balancing corporate tax entities that elect to have their FDT liability determined on 30 June

A late balancing corporate tax entity has the option to choose to have its franking deficit tax liability, if any, determined on a 30 June basis, rather than at the end of its income year. For more information refer to the fact sheet. Simplified imputation: franking deficit tax liability for late balancing corporate tax entities.This fact sheet is available on our website.

If a late balancing corporate tax entity makes this choice and it has a debit balance in its franking account on 30 June 2003, then it will be required to lodge a Franking account tax return 2003, to account for this franking deficit tax liability, on or before 31 July 2003. This same entity will also be required to lodge a subsequent franking account tax return within one month after the end of its income year if it has to:

• account for any over-franking tax liability, and/or
• disclose any significant variation in its benchmark franking percentage between franking periods.

The over-franking tax liability, if any, must be paid by the last day of the month immediately following the end of the income year. For more information on over-franking tax and the disclosure obligation seeOver-franking tax andSection C Significant variation in benchmark franking percentage.