Franking Credits

[Colin Law]

2009/7/7 Graeme Nichols <gnichols at tpg.com.au>:
> Hi,
>
> I am wondering how to keep track of Franking Credits. It is easy enough to
> split dividends to Unfranked and Franked components but a Franking Credit is
> the tax paid, by the Company, on the dividend at the Company rate of 30% and
> offsets the individual's tax liability on the dividend.
>
> It doesn't actually come FROM anywhere.
>
> How do you account for it here on GnuCash?
>

I don't know exactly how your tax system work but you could increase
the amount of the dividend received by the amount of the tax paid,
then split the transaction and pay the credit out as tax.  The nett
amount received is then correct and it appears as if you have paid the
tax, which I think in essence is what is happening.  Something along
those lines at least.

Colin