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Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 82: When and how co-operative company makes election

You could also call this:

“How and when a co-operative company can choose to handle a distribution differently for tax purposes”

You can make a special choice about how to handle a distribution if you’re part of a co-operative company. This choice is called an election. You can only make this choice for one cash distribution or one notional distribution in a year. You don’t have to make the choice right away. You can wait until after the income year when you made the distribution. But you must make your choice within 6 months after that income year ends.

If you do make this choice, you need to tell the Commissioner about it. You have to do this by the time you file your tax return for the year the distribution was made. This is important because it affects how your company’s taxes are calculated.

Remember, these rules are part of a bigger set of laws about how companies manage their taxes. If you want to know more about the specific types of elections you can make, you can look at sections OB 78, OB 78B, or OB 79 of the Income Tax Act 2007.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518958.

Topics:
Money and consumer rights > Taxes
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“This rule about co-operative companies and tax credits no longer applies”

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Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 82When and how co-operative company makes election

  1. A co-operative company may make an election under section OB 78, OB 78B, or OB 79 in relation to a distribution for—

  2. only 1 cash distribution during the income year:
    1. only 1 notional distribution during the income year.

      1. A co-operative company may make an election referred to in subsection (1)—

      2. after the income year in relation to which the distribution is made; but
        1. no later than 6 months after the end of the income year in relation to which the distribution is made.

          1. A co-operative company must notify the Commissioner of an election referred to in subsection (1)(a) or (b) no later than the time allowed for the company to file a return of income for the tax year corresponding to the income year in relation to which the distribution is made.

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          Notes
          • Section OB 82(1): amended, on , by section 72(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
          • Section OB 82(3): amended, on , by section 72(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
          • Section OB 82 list of defined terms notice: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).