Scenario
In TaxPlan, if a company has a tax payable amount of, for example, $10,000 but has franking credits of $17,000, there is no refund, and the company is excluded from the summary.
Explanation
TaxPlan is correct – there is no refund of excess franking credits to a company. Generally, only individuals and super funds receive a refund of any excess franking credits.
The ATO explains it this way:
For corporate entities such as companies, the franking credit is not refundable. A tax offset can reduce the entity’s tax liability to nil, but is not refunded if it exceeds the tax liability. However, the entity may convert any excess franking credit tax offsets to a tax loss which may be carried forward to future years.