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Income Tax Act 2007

Income - Income from equity

CD 13: Notional distributions of producer boards and co-operative companies

You could also call this:

“Special dividends for producer boards and co-operative companies”

If you’re part of a statutory producer board, you need to know that sometimes the board can decide to give out a special kind of dividend called a notional distribution. This happens when the board chooses to add something called an imputation credit to the distribution. The rules for this are in section OB 74.

The amount of this dividend isn’t just a random number. It’s worked out using a specific method that you can find in section OB 75.

Co-operative companies can do something similar. If you’re in one of these, your company might decide to give out a notional distribution as a dividend. This happens when they add an imputation credit to it. The rules for this are in section OB 79.

Just like with the producer boards, the amount of this dividend for co-operative companies is calculated in a special way. You can find out how in section OB 80.

It’s important to remember that not all payments that look like notional distributions are actually dividends. Section CD 33 explains more about this.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512568.

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Money and consumer rights > Taxes
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Part C Income
Income from equity

CD 13Notional distributions of producer boards and co-operative companies

  1. A notional distribution of a statutory producer board is a dividend if the board determines to attach an imputation credit to the notional distribution under section OB 74 (Statutory producer boards attaching imputation credits to notional distributions).

  2. The amount of the dividend is calculated under section OB 75 (Statutory producer boards’ notional distributions that are dividends).

  3. A notional distribution of a co-operative company is a dividend if the company determines to attach an imputation credit to the notional distribution under section OB 79 (Co-operative companies attaching imputation credits to notional distributions).

  4. The amount of the dividend is calculated under section OB 80 (Co-operative companies’ notional distributions that are dividends).

  5. Section CD 33 means that a payment that corresponds to a notional distribution may not be a dividend.

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