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Income Tax Act 2007

Recharacterisation of certain transactions - Imputation groups of companies

FN 10: When membership of imputation group ends

You could also call this:

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

You can stop being part of an imputation group in a few ways. First, you can choose to leave the group and tell the Commissioner about it. You can learn more about this in section FN 11.

Another way is if you no longer meet the rules for being in the group. These rules are explained in section FN 4. If this happens, you can find out what to do in section FN 12.

If you’re not the main company in the group (called the nominated company), you might have to leave if you’re not allowed to be in the same group as the nominated company anymore. You can also check section FN 12 for more information about this.

Lastly, if your imputation group doesn’t have a nominated company anymore, you’ll stop being part of the group. You can learn more about what happens in this case in section FN 13.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516765.

Topics:
Money and consumer rights > Taxes
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FN 9: Joining existing imputation group, or

“How to join an existing group for tax credits”

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FN 11: Company choosing to leave imputation group, or

“How a company can choose to leave an imputation group”

Part F Recharacterisation of certain transactions
Imputation groups of companies

FN 10When membership of imputation group ends

  1. A company stops being part of an imputation group if—

  2. the company chooses to leave the imputation group and notifies the Commissioner, see section FN 11; or
    1. the company no longer meets the eligibility criteria set out in section FN 4, see section FN 12; or
      1. the company is not a nominated company and is no longer entitled to be part of the same imputation group as the nominated company, see section FN 12; or
        1. the company is in an imputation group that no longer has a nominated company, see section FN 13.

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