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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:

“Getting a refund of tax credits for ICA companies”

If you are an ICA company, you have an imputation debit for certain amounts. This includes the amount of a transfer under section LA 6(2)(d) that does not lead to a refund of income tax. It also includes the amount of a refund to the company under section LA 6(2)(e).

You also have an imputation debit for a refundable tax credit or a research and development tax credit arising in a tax year after a debit arises under section OB 41. This debit is reduced by the lesser of the debit under section OB 41 or the amount by which the tax credit exceeds the total credits to the company’s imputation credit account.

The debit date is the day the amount is transferred or refunded.

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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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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 Repealed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 or a research and development 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 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(1C): amended (with effect on 1 April 2019), on , by section 116(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                  • Section OB 37(1C)(b): amended (with effect on 1 April 2019), on , by section 116(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                  • 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).
                  • Section OB 37 list of defined terms research and development tax credit: inserted (with effect on 1 April 2019), on , by section 116(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).