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OE 22: BETA person’s final balance
or “ What happens to your branch equivalent tax account when you leave New Zealand ”
You could also call this:

“Rules for managing available subscribed capital accounts for certain investment companies”

You can choose to become an available subscribed capital (ASC) account company if you are a public unit trust or a group investment fund that earns category A income. This rule doesn’t apply to multi-rate PIEs.

If you’re an ASC account company, you need to keep an ASC account for each tax year. This account shows the ASC credits and debits that happen during the year.

When you add credits to the account, you can include money from redemptions that are less than your available subscribed capital. This is worked out using the slice rule.

You can also take money out of the account. One way to do this is by moving a credit balance to your company’s imputation credit account.

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Next up: OF 2: ASC accounts

or “Rules for companies with Available Subscribed Capital (ASC) accounts”
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Part O Memorandum accounts
Available subscribed capital accounts (ASCA)

OF 1General rules for companies with ASC accounts

  1. A public unit trust or a group investment fund that derives category A income may choose to become an available subscribed capital (ASC) account company. This section does not apply to a multi-rate PIE.

  2. An ASC account company must maintain an ASC account for a tax year. The account is a record of ASC credits and ASC debits that arise in the account during the tax year.

  3. Credits to the account include redemption proceeds that are less than the ASC company’s available subscribed capital calculated under the slice rule.

  4. Debits to the account include a transfer of a credit balance to the company’s imputation credit account.

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Notes
  • Section OF 1(1): amended, on (applying for the 2010–11 and later income years), by section 438(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section OF 1 list of defined terms multi-rate PIE: inserted, on , by section 438(2)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section OF 1 list of defined terms portfolio tax rate entity: repealed, on , by section 438(2)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).