Another approach to the question of tax implications of the unfranked dividend is to check if you may meet ATO's rules for being assessed as a trader rather than investor.
It now appears that as I actively traded PRH shares over many years I could be considered a trader rather than an investor with respect to PRH shares. Also after the asset sale was completed I immediately sold out of both SLR and PRH. Therefore it is probable I may be able to offset the income (unfranked dividend of SLR Shares) against the expense (capital loss on PRH)for the 2012/13 tax year. This is now my accountants fallback position for my personal situation after I suggested that he check it out. Wish he had looked at this before we went to the trouble of seeking an individual tax ruling (re capital return).
For me it is far better that I reduce my net taxable income for 2012/13 rather than having an unfranked dividend to deal with and only able to carry forward the capital loss on PRH to a future year. It is fortunate that I have sold out of PRH to realise a capital expense in 2012/13 because I would not be able to offset the unfranked dividend against other years capital losses.
PRH Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
