Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Recharacterisation of certain transactions - Imputation groups of companies

FN 1: When this subpart applies

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.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516745.

Topics:
Money and consumer rights > Taxes
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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.