Paying franked dividends from your own company

[Whiskers]

Just one more question, if I may, to fill out my understanding of all this while awaiting my accountant's return.

Can I declare that my company ceases to carry on a business as of midnight on June 30th 2010. Then work out the tax for 2009/2010, annual return for 2009/2010, dividends to distribute net assets to me (franked to the credits available with knowledge of the tax to be paid), accountant fees etc. and pay out accordingly as soon as practicable in the new year and finally apply to deregister the company.

Would these termination actions require an Annual Review Fee to be paid for 2010/2011 as well as having to submit a tax return (for the company) for the 2010/2011 tax year? I know deregistration can take several months to become effective.

I have not actually done this, but I think the proceedure would be, work out and clear all debts/liabilities including provision for tax, file cease to trade notice, pay tax, transfer remaining assets out of company then voluntary wind up company.

I believe you can cease to trade at any time. I expect you can pay your tax as of then rather than wait until June 30, but give the ATO a call, they will be able to advise the proceedure.

You need to fullfill ASIC requirements in conjunction with the ATO. Asic has some literature here: http://www.asic.gov.au/asic/asic.nsf/byheadline/Deregistering+a+company?openDocument

 

[bellenuit]

Can a PAYG Tax Instalment paid today (29/6) be used against a franked dividend paid to myself this tax year (2009/2010) even if the PAYG instalment is not due until next tax year (28 July 10)?

I have already made the payment to myself. However, part of the payment is a part payment against a loan I made to the company and part is to be a fully franked dividend. I haven't yet decided how much is to be allocated to each and want to maximise the fully franked dividend part, hence the question.

Note: The payment is all from profits.