Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Recharacterisation of certain transactions - Consolidated groups of companies - Treatment of foreign dividends

FM 30: Application of certain provisions to consolidated groups

You could also call this:

“Rules for tax refunds when company groups merge”

When a group of companies joins together, it’s called a consolidated group. If this group stops existing because all the companies in it join with another company, it’s called a resident’s restricted amalgamation. This can happen even if a company outside the group is involved too.

If this happens, there’s a special rule about tax refunds. Section RA 19 says what to do if too much tax was paid or if tax was paid by mistake. This rule applies from the time the groups join together. It treats the consolidated group and the new combined company as if they were one single company.

This means that if the consolidated group paid too much tax before they joined with the other company, the new combined company can ask for that money back, just as if they had been one company all along.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516711.

Topics:
Money and consumer rights > Taxes
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FM 29: Treatment of credit balance in consolidated group’s FDP account, or

“How a group of companies used to handle foreign dividend payments (no longer applies)”

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FM 31: Eligibility rules, or

“Rules for companies joining or staying in a consolidated group”

Part F Recharacterisation of certain transactions
Consolidated groups of companies: Treatment of foreign dividends

FM 30Application of certain provisions to consolidated groups

  1. Repealed

  2. Repealed

  3. Repealed

  4. Repealed

  5. Repealed

  6. Section RA 19 (Refunds of excess amounts or when amounts mistakenly paid) applies, modified as necessary, from the time of amalgamation when a consolidated group ends its existence on a resident’s restricted amalgamation that involves all companies in the consolidated group, whether or not with a company outside the consolidated group, in relation to tax paid by the consolidated group as if it and the amalgamated company were a single company.

  7. Repealed
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Notes
  • Section FM 30(1) heading: repealed, on , pursuant to section 112(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(1): repealed, on , by section 112(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(2) heading: repealed, on , pursuant to section 112(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(2): repealed, on , by section 112(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(3) heading: repealed, on , pursuant to section 112(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(3): repealed, on , by section 112(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(4) heading: repealed, on , pursuant to section 113(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(4): repealed, on , by section 113(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(5) heading: repealed, on , pursuant to section 113(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(5): repealed, on , by section 113(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(7) heading: repealed, on , pursuant to section 113(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30(7): repealed, on , by section 113(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30 list of defined terms FDP account: repealed, on , by section 113(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30 list of defined terms FDP penalty tax: repealed, on , by section 113(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30 list of defined terms FDPA company: repealed, on , by section 113(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30 list of defined terms foreign dividend: repealed, on , by section 113(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30 list of defined terms further FDP: repealed, on , by section 113(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section FM 30 list of defined terms nominated company: repealed, on (with effect on 30 March 2017), by section 101 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section FM 30 list of defined terms policyholder credit account: repealed, on , by section 112(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).