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New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 57: ICA refund of NRWT

You could also call this:

“Australian ICA company must record NRWT refunds as imputation debits”

You need to know about a rule for Australian ICA companies. When an Australian ICA company gets a refund of NRWT (Non-Resident Withholding Tax), they must record it as an imputation debit. This is because the original NRWT payment was recorded as an imputation credit under section OB 27.

This imputation debit is listed in a special table called ‘table O2: imputation debits’ under row 30, which is about refunds of NRWT. The related imputation credit is listed in another table called ‘table O1: imputation credits’ under row 25, which is about NRWT that was withheld.

The company must record this debit on the same day they receive 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=DLM1518845.

Topics:
Money and consumer rights > Taxes
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OB 56: ICA final balance, or

“Recording the final credit balance when a company stops being an ICA company”

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OB 58: ICA refund of amount of tax for schedular payment, or

“Refund of tax on scheduled payment to Australian company requires recording as imputation debit”

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 57ICA refund of NRWT

  1. An Australian ICA company has an imputation debit for an amount of a refund of NRWT that gave rise to an imputation credit under section OB 27.

  2. The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 30 (refund of NRWT). The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 25 (NRWT withheld).

  3. The debit date is the day the refund is made.

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