CA ANZ has lodged a submission for the ATO Consultation paper – Capital raised for the purpose of funding franked distributions (Consultation Paper). The purpose of the paper is to help determine the priority areas for future ATO public advice and guidance related to the new integrity measure in section 207-159 of the Income Tax Assessment Act 1997 (ITAA 1997) addressing franked distributions funded by capital raisings.

Based on member feedback, CA ANZ has commented on the following topics as priority areas needing guidance:

• Family or commercial dealings of private companies
• Timing of capital raising and payment of distribution
• Administering the measure - Practical impact of the application of section 207-159.