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EK 19: Environmental restoration account of amalgamating company
or “Transfer of environmental restoration funds when companies merge”
You could also call this:

“Environmental restoration savings for companies in a group”

If you are part of a group of companies, your company can have an environmental restoration account. This account helps you save money for fixing environmental problems.

The main company in your group can do things for your company’s account. They can make payments, apply for things, and move money around. They can also receive refunds and transfers of money.

When the main company does these things, they can use the group’s financial statements that have been checked by an expert. This makes it easier for them.

The main company can use the group’s financial statements to figure out how much each company in the group needs to pay. They look at what each company has to do to fix environmental problems or reduce noise. They don’t include other kinds of spending in this calculation.

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Next up: EK 21: Notices in electronic format

or “Sending tax notices electronically as required by Inland Revenue”
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Part E Timing and quantifying rules
Environmental restoration accounts

EK 20Environmental restoration account of consolidated group company

  1. A company that is part of a consolidated group may have an environmental restoration account.

  2. The nominated company for the consolidated group may act on behalf of the group company under this subpart to—

  3. make payments, applications, and transfers:
    1. receive refunds and transfers.

      1. In making payments and applications under this subpart, the nominated company may rely on the audited consolidated financial statements for the consolidated group.

      2. If the nominated company relies on the audited consolidated financial statements for the consolidated group, the consolidated figures for the anticipated liabilities and incurred expenditure of the consolidated group are attributed to the group companies on the basis of the individual obligations of the companies to incur expenditure of a kind listed in schedule 19, part B (Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant or making of noise) and not in schedule 19, part C.

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      Notes
      • Section EK 20(4): amended (with effect on 1 April 2018), on , by section 173 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
      • Section EK 20 list of defined terms apply: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).