Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Tax credits and other credits - Tax credits relating to attributed controlled foreign company income

LK 15: Use of amalgamating company’s credits

You could also call this:

“How tax credits can be used when companies join together”

When a company joins with another company, it’s called an amalgamation. If a company has a tax credit before it joins with another company, there are special rules about how that credit can be used.

The new company that is formed after the joining can only use the tax credit if it follows certain rules. These rules are explained in another part of the law called section LK 6. Both the new company and all the companies that joined together must follow these rules.

This law helps make sure that tax credits are used fairly when companies join together.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518187.

Topics:
Money and consumer rights > Taxes
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LK 14: Use by amalgamated company of credits carried forward, or

“Merged companies can use leftover tax credits from before joining”

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LL 1: What this subpart does, or

“This section explains that subpart LL is no longer part of the Income Tax Act”

Part L Tax credits and other credits
Tax credits relating to attributed controlled foreign company income

LK 15Use of amalgamating company’s credits

  1. This section applies when a company has a tax credit under this subpart arising in whole or in part before an amalgamation.

  2. The amalgamated company may use the credit only if the company and each amalgamating company meet the requirements of section LK 6.

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