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Income Tax Act 2007

Recharacterisation of certain transactions - Imputation groups of companies

FN 9: Joining existing imputation group

You could also call this:

“How to join an existing group for tax credits”

You can join an imputation group if you’re a company that meets the requirements in [section FN 4(1)]. To do this, you need to tell the Commissioner.

If you’re part of a group of companies that work together (called a consolidated group) and you meet the requirements in [section FN 4(2)], the main company in your group can tell the Commissioner that all the companies in your group want to join an imputation group.

When you tell the Commissioner that you want to join, you need to agree that all the companies joining will share responsibility for any extra income tax, penalties, or interest that might come from how the imputation group’s credit account is run. This is explained in [section FN 3] and [Part 7 of the Tax Administration Act 1994].

If you’re a single company joining an imputation group, your membership starts at the beginning of the tax year when the Commissioner gets your notice.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516763.

Topics:

Money and consumer rights > Taxes

FN 8: Trans-Tasman imputation groups and resident imputation subgroups, or

“Rules for tax groups with both Australian and New Zealand companies”

FN 10: When membership of imputation group ends, or

“How a company can stop being part of an imputation group”

Part F Recharacterisation of certain transactions
Imputation groups of companies

FN 9Joining existing imputation group

A company that is eligible under section FN 4(1) may join an imputation group by notifying the Commissioner.
If the companies that are part of a consolidated group are eligible under section FN 4(2), the nominated company of the consolidated group may notify the Commissioner that all the companies in the consolidated group are to join an imputation group.
The companies referred to in subsections (1) and (2) must agree in the notice to be jointly and severally liable under section FN 3 for any 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.
A notice under subsection (1) has effect from the start of the tax year in which the Commissioner receives the notice.

Compare

2004 No 35 ss FDA 2(1)–(3), (5), FDA 4

Notes

Section FN 9(2): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).