What is the accounting and tax treatment for a dividend received from a company which has been liquidated?
I'm confused was it paid
I'm confused was it paid before the liquidation or after
The dividend was paid to the creditors after the liquidation.
I presume that the dividend relates to an old debt that had previously been provided as a bad debt. If so, I'd bring the income in as a credit to bad debts.
Frank Investment Income
That is correct I had written off the debt in the previous year. My only concern was because the liquidators stated that is was a dividend then should it be treated as franked investment income.