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ACCT 358
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Tutorial for Week Beginning 11 March 2013
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Tutorial: Company Taxation: Imputation, RWT/NRWT (continued) Dividend Imputation 1. SpannerWorks Limited is a closely held private company incorporated on 1 April 2001. Its share capital comprises $40,000 $1 ordinary shares fully paid and 10,000 15% preference shares fully paid to $1.00. SpannerWorks Limited has provided you with a list of the following tax transactions it has entered into. The opening balance of the ICA account as at 31 March 2011 was $1,500.
Imputation Transactions (a)(b) | 15 Apr. 2011 | SpannerWorks pays an interim dividend of 8% on the ordinary shares and makes payment of the dividend due on the preference shares. The maximum ratio of imputation credits allowable is allocated to each distribution. | (c) | 7 May 2011 | SpannerWorks pays the 3rd instalment of 2011 Provisional Tax of $900. | (d) | 28 Aug. 2011 | SpannerWorks pays 1st instalment of 2012 provisional tax of $1,000. | (e) | 7 Oct. 2011 | SpannerWorks pays fringe benefit tax of $5,000. | (f) | 10 Dec. 2011 | SpannerWorks pays a final dividend of 8% on ordinary shares. The imputation credits allocated are the maximum allowable. | (g) | 15 Jan. 2012 | SpannerWorks pays the 2nd instalment of 2012 provisional tax of $1,000. | (h) | 7 Feb. 2012 | SpannerWorks pays 2011 year terminal tax of $1,500. | (i) | 2 Apr. 2012 | SpannerWorks receives a dividend of $2,500 (inclusive of any RWT deduction) from a New Zealand company. Imputation credits attaching to this dividend are the maximum allowable. | (j) | 2 Apr. 2012 | SpannerWorks also receives a dividend of $NZ1,000 from an Australian company with franking