Item 12 - Dividends

Click this link for information on Item 12 Dividends on the ATO website.

If the TOFA rules apply to the partnership, include all unfranked dividends that were paid or credited to it by Australian companies in respect of financial arrangements subject to the TOFA rules at K.

You do not lodge a partnership tax return where the only income derived jointly (or in common) with another person was:
* rent from a jointly owned property
* Interest from a jointly held account
* Dividends from jointly held shares
and you were not in a partnership carrying on a business. In these three instances, each person shows their share of the income and expenses at the appropriate items on their own tax return.

Completing the Labels

Use the Dividend worksheet (div) to enter details of each dividend received. When the Franked amount is entered, MYOB Tax will calculate the statutory Franking credit — this figure may be edited if the dividend was only partially franked. Transactions are entered in dollars and cents and the total is rounded on integration to the main return. Where the dividend is co-owned sharing functionality is offered in the worksheet. Refer to Gross dividends worksheet (div).

Dissection and record keeping fields are provided for:

Name of company: Enter the name of the company from which the dividend was received.

Unfranked dividend: Enter the unfranked dividends received before any TFN amounts were deducted.

Franked dividend: Enter the franked dividends received.

Franking credit: This figure is automatically calculated by MYOB Tax when you press Enter or Tab off the Franked amount field. To restore automatic recalculation of the Franking Credit after it has been edited, you should delete both the Franked Amount and the Franking credit then re-enter the Franked Amount.

TFN amounts: TFN amounts withheld cannot exceed 50% of unfranked dividends.

CCH References

4-100 Taxation of dividend recipients

4-110 What is a dividend

4-120 When is a dividend paid