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Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 53: ICA debit on resident’s restricted amalgamation

You could also call this:

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

When companies join together in a special way called a resident’s restricted amalgamation, there can be changes to their tax accounts. If you’re a company that deals with imputation credits (which are a type of tax credit), you need to know about this.

After the amalgamation, you might have to record a debit (which is like a decrease) in your imputation credit account. This happens if there were any debits that should have been recorded in the old companies’ accounts but weren’t.

There are two main situations where this can happen:

  1. If there were unrecorded debits in one of the old companies’ imputation credit accounts. You can find more details about this in section OA 10.

  2. If there were debits in the imputation credit account of a group of companies that stopped existing because of the amalgamation. You can learn more about this in section OA 14.

This debit is listed in a special table called ‘table O2: imputation debits’ under row 26.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518837.

Topics:
Money and consumer rights > Taxes
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“Transfer of company's credit balance to consolidated group's imputation credit account”

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“Imputation debit for tax advantage schemes”

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 53ICA debit on resident’s restricted amalgamation

  1. An ICA company has an imputation debit for the amount of a debit described in subsection (3) that arises on or after a resident’s restricted amalgamation in the account of the amalgamated company under 1 of the sections listed in subsection (3).

  2. The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 26 (debit on resident’s restricted amalgamation).

  3. The sections are—

  4. section OA 10 (When credits or debits due to amalgamating company but not recorded) for imputation debits in the imputation credit account of an amalgamating company:
          1. section OA 14 (Continuity of shareholding when group companies amalgamate) for imputation debits in the imputation credit account of a consolidated imputation group that ends its existence on the amalgamation.

                Compare
                Notes
                • Section OB 53(3)(b): repealed, on , by section 203(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OB 53(3)(c): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 94(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
                • Section OB 53(3)(d): repealed, on , by section 203(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OB 53(3)(f): repealed, on , by section 203(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OB 53(3)(g): repealed, on , by section 203(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OB 53 list of defined terms CTR account: repealed (with effect on 1 July 2011), on , by section 94(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
                • Section OB 53 list of defined terms CTR debit: repealed (with effect on 1 July 2011), on , by section 94(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
                • Section OB 53 list of defined terms FDP account: repealed, on , by section 203(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OB 53 list of defined terms FDP debit: repealed, on , by section 203(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OB 53 list of defined terms policyholder credit account: repealed, on , by section 203(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OB 53 list of defined terms policyholder debit: repealed, on , by section 203(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).