Off-Market Buy-Back

Can anyone assist by advising how I record an Off-Market Buy-Back where part of the Buy-Back price includes an ATO sanctioned Franked amount (which has an associated Franking Credit amount - as per the data provided in the accompanying pdf


  • Denise
    Denise Member Posts: 7

    I would post these transactions:

    You'll need to set up a notional cash account to receive the deemed income and I would also set up a special category for the deemed income.

    Record an income event for the franked income component at $0.98 per share and include the franking credit to the cash account receiving the funds.

    Per Note 1: Record an income event for the $0.35 Deemed income to a 'notional cash account' that you set up for this purpose. Classify it as Miscellaneous and set up a new category for Deemed income for tax purposes

    Then SELL the shares for the capital $1.61 cash to the cash account receiving the funds.

    This at least captures the data so it is available for review for preparation of tax return and subject to final ATO ruling.

    Cash is correct, income is correct, franking credits are correct. Capital gain for tax purposes may need some manual intervention once the ATO ruling comes through.

    Hope this helps

  • Ray Thompson
    Ray Thompson Member Posts: 19

    Thank you Denise. I'll give this a crack.