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Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 6: ICA transfer from tax pooling account

You could also call this:

“Credit for company when funds transferred from tax pooling account”

If you’re an ICA company, you can get an imputation credit when you receive funds from a tax pooling account. This happens when an intermediary transfers the right to use those funds from someone else to your company.

The amount of the credit is shown in a special table called ‘imputation credits’ under the fourth row, which talks about transfers from tax pooling accounts.

The date you get the credit depends on what happens with the funds:

If the intermediary moves the funds from the tax pooling account to your tax account with the Commissioner, the credit date is when the transfer happens, as explained in section RP 19.

If the intermediary moves the funds to the Commissioner to pay for an increased amount of tax you owe (not including income tax), as described in section RP 17B, the credit date is when this transfer takes place.

If the intermediary gives the funds back to your company from the tax pooling account, the credit date is when you get the refund.

If the intermediary moves your right to the funds to someone else, the credit date is when this transfer occurs.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518710.

Topics:
Money and consumer rights > Taxes
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OB 5: ICA deposit in tax pooling account, or

“ICA companies get credits for depositing money into tax pooling accounts”

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OB 7: ICA payment of further income tax, or

“Imputation credit for paying extra income tax as an ICA company”

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 6ICA transfer from tax pooling account

  1. An ICA company has an imputation credit for an amount representing an entitlement to funds held in a tax pooling account if the intermediary transfers the entitlement from another person to the company.

  2. The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 4 (transfer from tax pooling account).

  3. The credit date is,—

  4. for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the company's tax account with the Commissioner, the credit date under section RP 19 (Transfers from tax pooling accounts) for the amount transferred; or
    1. for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the Commissioner to satisfy a liability of the company that is an increased amount of tax under section RP 17B (Tax pooling accounts and their use) other than income tax, the date of the transfer; or
      1. for an entitlement to funds that are refunded by the intermediary from the tax pooling account to the company, the date of the refund; or
        1. for an entitlement that is transferred by the intermediary from the company to another person, the date of the transfer.

          Compare
          Notes
          • Section OB 6(1): substituted (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 95(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
          • Section OB 6(3): substituted (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 95(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
          • Section OB 6(3)(ab): inserted (with effect on 6 October 2009), on , by section 190 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).