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Income Tax Act 2007

Memorandum accounts - General provisions

OA 3: General rules for maintaining memorandum accounts

You could also call this:

“Rules for tracking money in and out of special tax accounts”

You need to keep a record of money coming in and going out of special accounts called memorandum accounts. This applies if you have to keep these accounts or if you choose to.

When you add money to the account, it’s called a credit. When you take money out, it’s called a debit. You must write down all credits and debits on the day they happen. Each type of memorandum account has its own list of credits and debits.

During a tax year or income year, if you have more credits than debits, your account has a credit balance. This means you have more money coming in than going out.

If you have more debits than credits during this time, your account has a debit balance. This means you have more money going out than coming in.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518637.

Topics:

Money and consumer rights > Taxes

OA 2: Memorandum accounts, or

“Records of tax credits and debits for different accounts”

OA 4: Certain credits and debits arising only in group accounts, or

“Group companies may have financial changes that only appear in their shared account”

Part O Memorandum accounts
General provisions

OA 3General rules for maintaining memorandum accounts

This section sets out the rules that apply in relation to a memorandum account to a person who—
is required to maintain a memorandum account; or
may choose to maintain an account.

A person who maintains a memorandum account must record all credits and all debits that arise in the account as at their credit date or debit date. The credits and debits are listed in provisions in the relevant subpart for each type of memorandum account.
The credit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of credits over debits.
The debit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of debits over credits.

Compare

2004 No 35 ss ME 2, ME 3(1), ME 16, ME 17(1), ME 22(1), ME 26, MF 2, MF 3(1), MF 8, MF 12(1), MG 1, MG 3(1), MG 14(1), MG 15(1), MI 1, MI 3(1), MI 17(1), MI 18(1), MJ 2, MJ 3(1), MK 2, MK 3(1)