Mr Smith holds 150,000 stapled securities in Blue Group, which has just announced a final distribution of 20 cents per stapled security. The dividend component of 15 cents per share relating to Mr Smith’sshare in Blue Company is to be fully franked at the company tax rate of 30%. The distribution component of 5 cents per unit relating to Mr Smith’s unit in Blue Trust is unfranked. What is the taxable amount of distribution to be included in Mr Smith’s tax return?

Answer rating: 100% (QA)

Mr Smiths taxable income is the taxable value of the franked portion of the distribution plus the u... View the full answer