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Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 31: ICA allocation of provisional tax

You could also call this:

“Sharing provisional tax with another company creates a debit in your imputation credit account”

When you’re an ICA company, you might decide to share some of your provisional tax with another company that hasn’t paid enough. This is called allocating provisional tax. If you do this, you’ll get an imputation debit. This means the amount of tax you’ve shared is taken away from your imputation credit account.

You can find information about this imputation debit in a special table called ‘table O2: imputation debits’. It’s listed in row 3 of that table, under ‘allocation of provisional tax’.

The day this debit happens is when you tell the Commissioner about sharing your provisional tax. The Commissioner is the person in charge of taxes in New Zealand.

If you want to know more about how companies can share provisional tax, you can look at section RC 32. This section talks about how wholly-owned groups of companies can do this.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518764.

Topics:
Money and consumer rights > Taxes
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OB 30: ICA payment of dividend, or

“Imputation debit when a company pays a dividend with an attached imputation credit”

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OB 32: ICA refund of tax or transfer from account, or

“Debit for tax refunds or transfers from an imputation credit account”

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 31ICA allocation of provisional tax

  1. An ICA company has an imputation debit for an amount of provisional tax allocated by the company under section RC 32 (Wholly-owned groups of companies) to an underpaid company.

  2. The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 3 (allocation of provisional tax).

  3. The debit date is the day the Commissioner is notified of the allocation.

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