Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
OB 46B: ICA transfer from group company to loss-using group company
or “Transfer of tax credits between companies in the same group when one is using a loss”
You could also call this:

“Recording a debit for imputation credits on policyholder dividends”

If you are an ICA company, you might have to record an imputation debit. This happens when you get a dividend that has an imputation credit attached to it. You need to record this debit if three things are true:

  1. You got the dividend as a life insurer.
  2. The dividend is part of your policyholder base.
  3. It’s not already affected by a debit under section OB 41.

The amount of the debit is the same as the imputation credit on the dividend. This debit is listed in a special table called “table O2: imputation debits” under row 20.

You need to record this debit on the last day of the tax year.

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 It might be out of date or be missing some parts.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

Next up: OB 47B: Tax paid by recipients of R&D loss tax credits

or “Tax repayment for companies receiving R&D loss tax credits”
Next

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 47Debit for policyholder base imputation credits

  1. An ICA company has an imputation debit for the amount of an imputation credit attached to a dividend derived by the company, to the extent to which it is—

  2. derived by it as a life insurer; and
    1. apportioned to their policyholder base; and
      1. not affected by a debit under section OB 41.

        1. The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 20 (debit for policyholder base imputation credits).

        2. The debit date is the last day of the tax year.

        Notes
        • Section OB 47: substituted, on , by section 396(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section OB 47(1): replaced (with effect on 1 July 2010), on , by section 121(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).