Assignment Task: Smart Tech Ltd ('ST'), a resident company (which is not a base rate entity) is owned equally by Cinderella (a non-resident shareholder) and Maxwell (a resident shareholder). ST had a deficit of $60,000 in its franking account as at 30 June 2021 and was also required to pay franking deficit tax in July 2021. Following a thorough tax audit from ATO, ST had to pay an additional tax of $78,000 on 15 September 2021 in respect of its 2019/2020 tax year. ST paid fully franked dividend distributions totalling $32,000 on 1 October 2021.
ST does not wish to incur franking deficit tax, but its shareholders want to receive another fully franked distribution on 15 June 2022.
Calculate the maximum fully franked dividend distribution that Smart Tech can pay on 15 June 2022 without incurring any franking deficit tax.