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Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 14: ICA payment of tax on leaving wholly-owned group

You could also call this:

“Tax credit for companies paying extra tax when leaving a group”

If you’re a company that uses an imputation credit account (ICA), you can get an imputation credit in a special situation. This happens when you choose to pay extra tax called imputation additional tax. You might do this when you’re leaving a group of companies that are all owned by the same parent company.

When you pay this extra tax, you get an imputation credit for the amount you pay. However, if you’ve paid too much tax and some of it is being used for something else (as mentioned in section OB 71(8)), that part doesn’t count towards this credit.

This particular credit is listed in a special table called “table O1: imputation credits”. It’s in row 12 of that table, under the title “payment of tax on leaving wholly-owned group”.

The date of the credit is important too. It’s recorded on the day you actually pay the extra tax to the Commissioner of Inland Revenue.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518726.

Topics:
Money and consumer rights > Taxes
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OB 13: ICA transfer of debit balance on leaving wholly-owned group, or

“Transfer of money owed in tax account when leaving a company group”

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OB 15: ICA payment of tax on joining wholly-owned group, or

“Imputation credit for tax paid when joining a wholly-owned group”

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 14ICA payment of tax on leaving wholly-owned group

  1. An ICA company has an imputation credit for a payment of imputation additional tax that it chooses to pay under section OB 71, excluding an excess tax payment applied under section OB 71(8).

  2. The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 12 (payment of tax on leaving wholly-owned group).

  3. The credit date is the day the imputation additional tax is paid to the Commissioner.

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