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Income Tax Act 2007

Recharacterisation of certain transactions - Imputation groups of companies

FN 3: Liabilities of companies in imputation group

You could also call this:

“Companies in a tax credit sharing group are jointly responsible for group tax debts”

If you’re part of a group of companies that share tax credits, you need to know something important. You and all the other companies in your group are responsible for paying extra taxes, fines, and interest if there are problems with the group’s tax credit account. This means if the group owes money because of how the tax credits were used, you might have to help pay it back. The rules for this are in Part 7 of the Tax Administration Act 1994.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516750.

Topics:
Money and consumer rights > Taxes
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FN 2: Imputation rules, or

“Rules for how companies share tax credits with shareholders”

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FN 4: Eligibility rules, or

“Rules for companies to be part of an imputation group”

Part F Recharacterisation of certain transactions
Imputation groups of companies

FN 3Liabilities of companies in imputation group

  1. A company that is part of an imputation group is jointly and severally liable for further income tax, civil penalties, and interest under Part 7 of the Tax Administration Act 1994 arising from the operation of the imputation credit account of the imputation group.

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