During the year ended 30 June 2020 HUGE Pty Limited, a resident
Australian private company, received interest income of $18,700 and
a franked dividend of $9,900 with $3,100 of attached franking
credits. HUGE Pty Limited had allowable interest deductions of
$2,990. What will HUGE Pty Limited’s net tax to pay or its refund
be when its assessment issues? The Company pays at the
tax rate of 30%.
All calculations must be shown and relevant
legislation.
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