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Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 37: ICA refund of tax credit

You could also call this:

“Refunds and transfers that reduce a company's imputation credit balance”

When you’re part of an ICA company (a company with an imputation credit account), you need to know about imputation debits. These are like charges against your company’s account.

You’ll get an imputation debit in two main situations:

  1. When money is transferred out of your account to pay for things like PAYE or RWT, but it doesn’t result in a tax refund.

  2. When you get a refund under a specific part of the tax law.

There’s also a special rule about refundable tax credits. If you get one of these after a certain kind of debit has happened, you might not get the full amount of the credit. The amount you get depends on how much the earlier debit was and how much credit you’ve earned since then.

These debits are recorded in a special table called “table O2: imputation debits”. The debit for tax credit refunds is listed as row 9.

The date of the debit is important too. If it’s for a transfer, the debit date is when the money moves. If it’s for a refund, the debit date is when you get the refund.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518780.

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Money and consumer rights > Taxes
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Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 37ICA refund of tax credit

  1. An ICA company has an imputation debit for—

  2. the amount of a transfer under section LA 6(2)(d) (Remaining refundable credits: PAYE, RWT, and certain other items) to the extent to which the transfer does not lead to a refund of income tax:
    1. the amount of a refund to the company under section LA 6(2)(e).

        1. Repealed

        2. Despite subsection (1), an ICA company has an imputation debit for a refundable tax credit arising in a tax year after a debit arises under section OB 41, reduced by the lesser of—

        3. the debit under section OB 41:
          1. the amount by which the refundable tax credit exceeds the total credits to the company’s imputation credit account, for amounts satisfying the company’s income tax liability, during the period from the date of the debit to the date on which the credit balance is to be determined under sections RM 13 and RM 14 (which relate to limits on refunds for ICA companies).

            1. The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 9 (refund of tax credit).

            2. The debit date is—

            3. for a debit referred to in subsection (1)(a), the day the amount is transferred:
              1. for a debit referred to in subsection (1)(b), the day the amount is refunded.

                  Compare
                  Notes
                  • Section OB 37(1) heading: substituted (with effect on 1 April 2008), on , by section 393(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                  • Section OB 37(1): substituted (with effect on 1 April 2008), on , by section 393(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                  • Section OB 37(1)(c): repealed (with effect on 1 April 2009), on , by section 198(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section OB 37(1B) heading: repealed, on , pursuant to section 198(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section OB 37(1B): repealed, on , by section 198(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section OB 37(1C) heading: inserted, on , by section 169(1) (and see section 169(2) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                  • Section OB 37(1C): inserted, on , by section 169(1) (and see section 169(2) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                  • Section OB 37(3): substituted (with effect on 1 April 2008), on , by section 393(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                  • Section OB 37(3)(c): repealed (with effect on 1 April 2009), on , by section 198(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section OB 37 list of defined terms FDPA company: repealed, on , by section 198(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).