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Income Tax Act 2007

Recharacterisation of certain transactions - Amalgamation of companies

FO 2: Amalgamation rules

You could also call this:

“Rules for when companies join together and how it affects their taxes”

The amalgamation rules are a set of laws that explain what happens when companies join together. These rules are found in different parts of the law. Here’s what they cover:

This part of the law talks about amalgamation. It also explains how to handle dividends when companies join together. There are rules about what to do with deductions when a company stops existing because it has joined with another company.

The rules also cover what happens to tax losses and tax credits when companies merge. They explain how to deal with special accounts that companies keep for tax purposes.

There are instructions about how to handle tax payments when companies combine. Lastly, the rules mention two sections from another law called the Tax Administration Act 1994, which are also part of the amalgamation rules.

All these rules work together to make sure that when companies join together, everything is done properly and fairly for tax purposes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516779.

Topics:
Money and consumer rights > Taxes
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FO 1: What this subpart does, or

“This subpart outlines tax rules for New Zealand company mergers”

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FO 3: Resident’s restricted amalgamations, or

“Rules for New Zealand companies joining together in a special way”

Part F Recharacterisation of certain transactions
Amalgamation of companies

FO 2Amalgamation rules

  1. The amalgamation rules means the following:

  2. this subpart:
    1. sections CD 35, CD 43(24) and (25), and CD 44(8) (which relate to the treatment of dividends):
      1. sections DB 8(3) to (5), DV 14 and DV 15 (which relate to the treatment of deductions when an amalgamating company ends its existence on a resident’s restricted amalgamation):
        1. sections IA 9, IE 2 to IE 5, and IQ 1 (which relate to tax losses):
          1. sections LK 12 to LK 15 (which relate to tax credits):
            1. sections OA 9, OB 24, OB 53 (which relate to memorandum accounts):
              1. sections RA 20, RC 33, RD 46, and RD 49 (which relate to tax payments):
                1. sections 75 and 76 of the Tax Administration Act 1994.

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                  Notes
                  • Section FO 2(b): amended (with effect on 1 April 2008), on , by section 109 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).