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Income Tax Act 2007

Memorandum accounts - Memorandum accounts of consolidated groups - Imputation credits of consolidated imputation groups

OP 7: Consolidated ICA payment of tax

You could also call this:

“Groups sharing tax credits: when paying tax results in a credit”

When a group of companies that share imputation credits pays income tax, they usually get an imputation credit. This credit is noted in a special table.

However, there are some cases where the group doesn’t get an imputation credit. These include:

  • When they pay tax as a trustee, unless it’s on a specific type of income.
  • When they move money from a tax pooling account to their tax account with the government.
  • When they pay tax on income from a company that doesn’t have an imputation credit account.
  • When a life insurance company pays tax on a certain type of income.
  • When they pay tax by using an imputation credit under section LE 1.
  • When they pay tax by using a credit under subpart LP.
  • When they pay tax by using a research and development tax credit.
  • When they use extra tax to pay income tax or provisional tax under section OB 65 or OB 66.
  • When they pay income tax by using extra tax under section OB 69(3).

The credit is dated on the day the tax is paid.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519425.

Topics:
Money and consumer rights > Taxes
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“Rules for treating company groups as one for certain tax matters”

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OP 8: Consolidated ICA deposit in tax pooling account, or

“Consolidated groups can get tax credits for deposits into shared tax savings accounts”

Part O Memorandum accounts
Memorandum accounts of consolidated groups: Imputation credits of consolidated imputation groups

OP 7Consolidated ICA payment of tax

  1. A consolidated imputation group has an imputation credit for a payment of income tax. Subsection (3) overrides this subsection.

  2. The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 2 (payment of tax).

  3. A consolidated imputation group does not have an imputation credit for an amount of—

  4. income tax paid as a trustee, unless paid on category A income; or
    1. a transfer from a tax pooling account to a tax account with the Commissioner; or
      1. income tax paid on income derived by a company that is not an imputation credit account (ICA) company; or
        1. income tax paid by a life insurer to satisfy its schedular income tax liability for schedular policyholder base income; or
          1. income tax paid under section LE 1 (Tax credits for imputation credits) by crediting an imputation credit; or
                1. income tax paid by crediting an amount under subpart LP (Tax credits for supplementary dividends); or
                  1. income tax paid by crediting a research and development tax credit against income tax liability; or
                    1. further income tax applied under section OB 65 or OB 66 (which relate to further income tax) to pay income tax or provisional tax; or
                      1. income tax paid by crediting further income tax under section OB 69(3) (Further income tax paid satisfying liability for income tax).

                        1. The credit date is the day the tax is paid.

                        Compare
                        Notes
                        • Section OP 7(3)(d): substituted, on , by section 447(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                        • Section OP 7(3)(f): repealed, on , by section 228(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                        • Section OP 7(3)(fb): repealed (with effect on 1 April 2009), on , by section 228(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                        • Section OP 7(3)(gb): inserted, on , by section 18(1) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
                        • Section OP 7 list of defined terms FDP credit: repealed, on , by section 228(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                        • Section OP 7 list of defined terms policyholder base income tax liability: repealed, on , by section 447(3)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                        • Section OP 7 list of defined terms research and development tax credit: inserted, on , by section 18(2) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
                        • Section OP 7 list of defined terms schedular income tax liability: inserted, on , by section 447(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                        • Section OP 7 list of defined terms schedular policyholder base income: inserted, on , by section 447(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).