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Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 34: ICA refund from tax pooling account

You could also call this:

“Recording a company's tax refund from a pooling account”

This section talks about what happens when a company gets money back from a tax pooling account. A tax pooling account is a special account where companies can put money for their taxes.

If you’re a company and you have money in a tax pooling account, you might get some of it back. When this happens, you need to record it in your company’s books.

When you get the money back, you have to subtract it from your company’s imputation credit account. An imputation credit account is like a record of the tax you’ve paid.

The day you record this subtraction depends on whether you’re a normal company or a special kind of company called a qualifying company. For normal companies, you might record it on different days depending on how much money you got back and how much credit you had in your account. For qualifying companies, you always record it on the day you get the money back.

This helps make sure that your company’s tax records are correct and up to date.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518774.

Topics:
Money and consumer rights > Taxes
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OB 33: ICA amount applied to pay other taxes, or

“Using overpaid income tax to pay other taxes”

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OB 35: ICA transfer within tax pooling account, or

“Moving money in a tax pooling account affects company tax credits”

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 34ICA refund from tax pooling account

  1. This section applies for an ICA company when—

  2. the company has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under—
    1. section OB 5 (table O1: imputation credits, row 3 (deposit in tax pooling account)); or
      1. section OB 6 (table O1: imputation credits, row 4 (transfer from tax pooling account)); and
      2. the intermediary refunds the amount from the tax pooling account to the company.

        1. The company has an imputation debit for the amount of the refund.

        2. The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 6 (refund from tax pooling account).

        3. The debit date for a company that is not a qualifying company is the date found by applying the following paragraphs in order:

        4. the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the imputation credit account on that date:
          1. the day the refund is made to the extent of the remaining amount of the debit that is no more than the credit balance in the imputation credit account on the day of refund:
            1. the last day of the previous tax year for the remainder of the debit.

              1. The debit date for a qualifying company is the day the refund is made.

              Compare
              Notes
              • Section OB 34(1): substituted (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 98(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
              • Section OB 34(4) heading: substituted (with effect on 1 April 2008), on , by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section OB 34(4): substituted (with effect on 1 April 2008), on , by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section OB 34(4)(b): amended (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 98(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
              • Section OB 34(5) heading: added (with effect on 1 April 2008), on , by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section OB 34(5): added (with effect on 1 April 2008), on , by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section OB 34(5): amended (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 98(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
              • Section OB 34 list of defined terms company: inserted (with effect on 1 April 2008), on , by section 390(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section OB 34 list of defined terms imputation credit account: inserted (with effect on 1 April 2008), on , by section 390(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section OB 34 list of defined terms qualifying company: added (with effect on 1 April 2008), on , by section 390(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section OB 34 list of defined terms tax pooling account: inserted (with effect on 1 April 2008), on , by section 98(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
              • Section OB 34 list of defined terms tax year: added (with effect on 1 April 2008), on , by section 390(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).