Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - General provisions

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

You could also call this:

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

When companies are grouped together, some changes to their financial records might only show up in the group’s shared account, not in each company’s individual account. This is called a memorandum account. It’s like having a big piggy bank for the whole family instead of separate ones for each person. If you want to know more about how these group accounts work, you can look at subpart OP. This part of the law explains all about memorandum accounts for groups of companies.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518639.

Topics:
Money and consumer rights > Taxes
Previous

OA 3: General rules for maintaining memorandum accounts, or

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

Next

OA 5: Credits, or

“Types of credits in different accounts and where to find them”

Part O Memorandum accounts
General provisions

OA 4Certain credits and debits arising only in group accounts

  1. Certain credits or debits of a consolidated group may arise only in the memorandum account of the consolidated group and not in the memorandum account of a group company. Memorandum accounts of consolidated groups are dealt with in subpart OP (Memorandum accounts of consolidated groups).

Compare