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Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 52: ICA transfer to consolidated imputation group

You could also call this:

“Transfer of company's credit balance to consolidated group's imputation credit account”

When a company is part of a consolidated imputation group, the nominated company of that group can choose to transfer a credit balance from the company’s imputation credit account to the group’s imputation credit account. This is done under [section OP 22(2)].

If this happens, the company that’s transferring the credit balance gets an imputation debit. This debit is for the same amount as the credit balance being transferred to the group’s account.

You can find this debit listed in a table called “imputation debits”. It’s in row 25, which is labelled “transfer to consolidated imputation group’s ICA”.

The date of this debit is the same as the date the credit appears in the group’s imputation credit account. This makes sure everything lines up properly in the accounts.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518835.

Topics:
Money and consumer rights > Taxes
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OB 51: ICA credit transfer by company, or

“Company receives a dividend with an attached imputation credit”

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OB 53: ICA debit on resident’s restricted amalgamation, or

“Decrease in tax credits when companies merge in a specific way”

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 52ICA transfer to consolidated imputation group

  1. This section applies when the nominated company of a consolidated imputation group makes an election under section OP 22(2) (Consolidated ICA transfer from group company’s ICA) for a group company.

  2. The group company has an imputation debit for the amount of the credit balance that is transferred to the imputation credit account of the consolidated imputation group.

  3. The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 25 (transfer to consolidated imputation group’s ICA).

  4. The debit date is the same as the credit date for the credit to the imputation credit account of the consolidated imputation group for the amount of the credit balance transferred.

Notes
  • Section OB 52: replaced (with effect on 1 April 2008), on , by section 124(1) (and see section 124(2) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).