Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
FM 42: When company liquidated
or “Rules for when a company in a consolidated group is liquidated”
You could also call this:

“This subpart applies to companies forming an imputation group for dividend payments”

This part of the law applies when you have a group of companies that are all owned by the same person or entity. These companies can form something called an imputation group. This group allows one company to pay a special kind of dividend, called an imputed dividend. They can do this even if it’s a different company in the group that has paid tax in New Zealand. At least two companies need to be involved for this to work.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: FN 2: Imputation rules

or “Rules for how companies share tax credits with shareholders”
Next

Part F Recharacterisation of certain transactions
Imputation groups of companies

FN 1When this subpart applies

  1. This subpart applies when 2 or more companies that are part of a wholly-owned group of companies form an imputation group to enable a company in the imputation group to pay an imputed dividend when another company in the imputation group has a credit for New Zealand tax paid.