Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 35: ICA transfer within tax pooling account

You could also call this:

"Transferring tax credits within a special account for companies"

When you have a company with an entitlement to an amount in a tax pooling account, and it has an imputation credit for that entitlement under section OB 5 or section OB 6, this section applies. You need to know that the company has an imputation debit for a tax year for the amount of the transfer of the entitlement to funds in the tax pooling account. This imputation debit is referred to in table O2: imputation debits, row 7.

If you are not a qualifying company, the debit date is the last day of the previous tax year for part of the debit, the day the transfer is made for another part, or the last day of the previous tax year for the rest of the debit. You should look at the amount of the debit and the credit balance in the account to work out the debit date.

For a qualifying company, the debit date is the day the transfer is made.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on 20 May 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518776.

OB 34: ICA refund from tax pooling account, or

"Recording a company's tax refund from a pooling account"

OB 35B: ICA debit for transfer from tax pooling account for policyholder base liability, or

"Life insurer gets imputation debit for tax pooling transfer to pay policyholder income tax"

Part OMemorandum accounts
Imputation credit accounts (ICA)

OB 35ICA transfer within tax pooling account

This section applies for an ICA company when—
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
2. section OB 6 (table O1: imputation credits, row 4 (transfer from tax pooling account)); and
the intermediary transfers the entitlement from the company to another person.

The company has an imputation debit for a tax year for the amount of the transfer of the entitlement to funds in the tax pooling account.
The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 7 (transfer within tax pooling account).
The debit date for a company that is not a qualifying company is—
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 account on that date; or
the day the transfer 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 the transfer; or
the last day of the previous tax year for the remainder of the debit.

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

Compare

2004 No 35 s ME 5(1)(eb), (2)(ea), (eb)

Notes

Section OB 35(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 99(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 35(4)(b): substituted (with effect on 1 April 2008), on 6 October 2009, by section 391 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 35(5): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 99(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 35 list of defined terms transfer: inserted, on 1 April 2025, by section 115 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).