Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - Memorandum accounts of consolidated groups - Introductory provisions

OP 5: When credits and debits arise only in consolidated imputation group accounts

You could also call this:

“Rules for group-level tax credits and debits in consolidated imputation groups”

When you’re part of a consolidated imputation group, some credits and debits only show up in the group’s imputation credit account, not in the accounts of individual companies in the group.

The credits that only appear in the group account are for things like paying tax, putting money into a tax pooling account, getting research and development tax credits, and receiving dividends with imputation credits.

The debits that only show up in the group account include paying dividends, getting tax refunds, moving money within a tax pooling account, and transferring credits. There are also debits for things like breaching imputation ratios and dealing with policyholder base imputation credits.

These rules help keep track of the group’s tax situation as a whole, instead of looking at each company separately.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519420.

Topics:
Money and consumer rights > Taxes
Previous

OP 4: Resident imputation subgroups, or

“Rules for tracking credits and debits in resident imputation subgroups”

Next

OP 6: Provisions applying to consolidated imputation groups, or

“Rules for treating company groups as one for certain tax matters”

Part O Memorandum accounts
Memorandum accounts of consolidated groups: Introductory provisions

OP 5When credits and debits arise only in consolidated imputation group accounts

  1. A credit listed in subsection (2) arises only in the imputation credit account of a consolidated imputation group and not in the imputation credit account of a group company.

  2. The credit referred to in subsection (1) is a credit under the following sections and described in the following rows of table O19: imputation credits of consolidated imputation groups:

  3. section OP 7, row 2 (payment of tax):
    1. section OP 8, row 3 (deposit in tax pooling account):
      1. section OP 11C, row 6C (Research and development tax credits):
        1. section OP 12, row 7 (dividend derived with imputation credit).

              1. A debit listed in subsection (4) arises only in the imputation credit account of a consolidated imputation group and not in the imputation credit account of a group company.

              2. The debit referred to in subsection (3) is a debit under the following sections and described in the following rows of table O20: imputation debits of consolidated imputation groups:

              3. section OP 28, row 2 (payment of dividend):
                1. section OP 30, row 4 (refund of income tax):
                  1. section OP 32, row 6 (refund from tax pooling account):
                    1. section OP 33, row 7 (transfer within tax pooling account):
                      1. section OP 33B, row 7B (debit for transfer from tax pooling account for policyholder base liability):
                          1. section OP 35, row 9 (refund of tax credit):
                            1. section OP 37, row 11 (group company’s debit):
                              1. section OP 39, row 13 (replacement payment under share-lending arrangement):
                                1. section OP 40, row 14 (returning share transfer):
                                  1. section OP 41, row 15 (credit transfer):
                                    1. section OP 43, row 17 (breach of imputation ratio):
                                      1. section OP 44, row 18 (debit for policyholder base imputation credits).

                                        Compare
                                        Notes
                                        • Section OP 5(2)(bb): replaced, on , by section 17 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
                                        • Section OP 5(2)(c): amended, on , by section 227(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                        • Section OP 5(2)(d): repealed, on , by section 227(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                        • Section OP 5(2)(e): repealed (with effect on 1 April 2009), on , by section 445(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                        • Section OP 5(4)(d): amended (with effect on 1 April 2008), on , by section 105 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
                                        • Section OP 5(4)(db): inserted, on , by section 445(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                        • Section OP 5(4)(e): repealed, on , by section 227(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                        • Section OP 5(4)(k): amended, on , by section 445(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                        • Section OP 5(4)(l): added, on , by section 445(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).