2020 Private Business Online Series Part 4: Navigating the maze of base rate entities

Published on 15 Jul 2020 | Took place at Online, National

After what was a two-year epic to reduce the corporate tax rate, involving multiple legislative amendments and extensive ATO guidance, do you fully understand how to work out whether a company is a base rate entity? What was formerly a mundane process of determining a company’s tax rate and its franking rate is now more complicated, and there are a number of anomalous outcomes.

This session will cover the intricacies, nuances and subtleties of:

• the reduced corporate tax rate and franking rate, and the impact of legislated further changes
• the meaning of “base rate entity”, “base rate entity passive income” and “corporate tax rate for imputation purposes”, and associated interpretive issues including LCR 2019/5
• the impact of the COVID-19 crisis on a company’s tax rate and franking rate
• practical examples illustrating the complex treatment of amounts flowing through chains of trusts
• working out a company’s franking rate, including dividend strategies.