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OB 63: Australian dividends
or “Rules for imputation credits on certain Australian dividends”
You could also call this:

“How to add imputation credits to replacement payments when borrowing shares”

When you borrow someone’s shares and make a replacement payment, you can add an imputation credit to that payment. The imputation credit you add can be the same as or less than any imputation credit that came with a dividend you got for those borrowed shares before you made the replacement payment.

An imputation credit is like a special note that comes with some payments. It can help reduce the amount of tax you might need to pay.

Remember, this rule is part of the Income Tax Act 2007 in New Zealand. It’s about how to handle replacement payments when you’re borrowing shares from someone else.

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Next up: OB 65: Further income tax for ICA closing debit balance

or “Extra tax payable for negative balance in company's imputation credit account”
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Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 64Replacement payments

  1. On making a replacement payment, a share user under a share-lending arrangement may attach an imputation credit to the payment.

  2. The amount of the imputation credit must be equal to or less than the amount of any imputation credit attached to a dividend relating to the replacement payment that is received by the share user before the replacement payment is made.

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