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Income Tax Act 2007

Deductions - Expenditure specific to certain entities

DV 11: Distribution to member of co-operative company, excluded from being dividend

You could also call this:

“Co-operative companies can deduct certain payments to members that aren't counted as dividends”

If you are part of a co-operative company or a company owned by a co-operative company, you can get a tax deduction for money you give to members of the co-operative. This only applies if the money you give is not counted as a dividend under section CD 34B or CZ 41.

The amount you can deduct from your taxes is the same as the amount that is not counted as a dividend under section CD 34B or CZ 41.

You can claim this deduction in the same year that you give the money to the members.

This rule adds to the general permission for tax deductions, but you still need to follow all the other general rules about deductions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514164.

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Money and consumer rights > Taxes
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Part D Deductions
Expenditure specific to certain entities

DV 11Distribution to member of co-operative company, excluded from being dividend

  1. A co-operative company, or a company owned by a co-operative company, is allowed a deduction for a distribution made for an income year to a member of the co-operative company if an amount of the distribution is excluded by section CD 34B or CZ 41 (which relate to distributions to members of co-operative companies) from being a dividend.

  2. The amount of the deduction is the amount of the distribution that is excluded by section CD 34B or CZ 41, as applicable, from being a dividend.

  3. The deduction is allocated to the income year to which the distribution relates.

  4. This section supplements the general permission. The general limitations still apply.

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Notes
  • Section DV 11(1): amended (with effect on 1 July 2022), on , by section 51(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section DV 11(1): amended (with effect on 1 April 2010), on , by section 24(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
  • Section DV 11(2): amended (with effect on 1 July 2022), on , by section 51(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section DV 11(2): amended (with effect on 1 April 2010), on , by section 24(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
  • Section DV 11(3): amended (with effect on 1 April 2010), on , by section 24(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).