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Income Tax Act 2007

Memorandum accounts - General provisions

OA 7: Opening balances of memorandum accounts

You could also call this:

“How to carry forward account balances to a new tax year”

When you start a new tax year or income year, the opening balance of your memorandum account is the same as the closing balance from the previous year.

Any credits or debits that make up this opening balance are treated as if they were recorded on the date they were originally added to the account.

If you start a new memorandum account during a tax year, there are special rules for dealing with existing credits and debits. These rules apply in different situations:

If companies from different consolidated imputation groups decide to join together or form a new imputation group, you can find out what happens to their credits and debits in section OP 3(2).

If companies in an imputation group decide to become a consolidated group that is also a consolidated imputation group, you can find out what happens to their credits and debits in section OP 3(3).

For a resident imputation subgroup that’s part of a trans-Tasman imputation group, you can find out what happens to their credits and debits in section OP 4.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518661.

Topics:

Money and consumer rights > Taxes

OA 6: Debits, or

“How debits are applied to various tax accounts and credits”

OA 8: Shareholder continuity requirements for memorandum accounts, or

“Rules for keeping company credits when ownership changes”

Part O Memorandum accounts
General provisions

OA 7Opening balances of memorandum accounts

The opening balance of a memorandum account at the start of a tax year or income year, as applicable, is the closing balance of the account in the previous tax year or income year, as applicable.
The amount of each credit or debit that forms part of the opening balance of a memorandum account is treated as recorded in the relevant memorandum account on the date on which it was originally recorded.
If a consolidated group, company, or person starts a memorandum account during a tax year, the treatment of existing credits and debits is set out as follows:
when the companies of 2 or more consolidated imputation groups choose to combine to form, or to join, an imputation group, see section OP 3(2) (Changes in consolidated imputation groups):
when the companies that are part of an imputation group choose to convert their status to that of a consolidated group that is a consolidated imputation group, see section OP 3(3):
for a resident imputation subgroup associated with a trans-Tasman imputation group, see section OP 4 (Resident imputation subgroups).

Compare

2004 No 35 ss ME 3(2), ME 10(1A)–(1C), (2), ME 17(2), ME 22(2), ME 26(1), MF 3(2), MF 8(1), MF 12(2), MG 3(2), MG 13(3), MI 3(2), MI 15, MJ 3(2), MK 3(2)

Notes

Section OA 7(2) heading: replaced, on 29 March 2018 (with effect on 1 April 2008), by section 168(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7(2): replaced, on 29 March 2018 (with effect on 1 April 2008), by section 168(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7(3): replaced, on 29 March 2018 (with effect on 1 April 2008), by section 168(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms amount: inserted, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms ASC account: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms BETA company: repealed, on 1 July 2012, by section 84(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 7 list of defined terms BETA person: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms branch equivalent tax account: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 84(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 7 list of defined terms FDP account: repealed, on 1 April 2017, by section 179(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 7 list of defined terms imputation credit account: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms Maori authority credit account: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms PCA company: repealed, on 30 March 2017, by section 179(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 7 list of defined terms PCA person: repealed, on 30 March 2017, by section 179(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 7 list of defined terms policyholder credit account: repealed, on 1 July 2010, by section 375(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).