Taxed on 100% franked dividends
Gday,
I received a letter from the ATO saying I didn't declare dividends I reveiced last FY.
Those dividends were fully franked, which I originally thought it meant "what I get is what I keep". After the ATO email I did some research and it actually means that company will pay 30% tax on it and shareholder the rest based on their taxable income.
If I do the numbers, ATO wants me to pay 43% of the total amount I received. I received $1,000 and credit to pay is $430.
Does this sound right?
I have the option of accepting this figure or open a dispute.
Would anyone with more experience than me on this mind sharing their opinions?
Kind regards.
Edit: I called ATO, explained to them what I exposed here, admitting that I received an income that I didn't declare and the reasons why I didn't declare it. They were nice to me and understood the misunderstanding. No penalties or max rate applied. They re-ran my tax return and a new owing will be issued to me. Thanks everyone that took the time to put an input, I learnt a few things I did not know.