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Income Tax Act 2007

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

OP 15: Consolidated ICA replacement payment to company under share-lending arrangement

You could also call this:

“Tax credit for consolidated group when member receives dividend replacement payment”

When you’re part of a group of companies that share tax credits (called a consolidated imputation group), you can get a tax credit in certain situations. This happens when one company in your group receives a payment to replace dividends they missed out on because they lent their shares to someone else.

If the replacement payment comes with a tax credit attached, or if it’s treated like it has a tax credit attached, your group gets to use that credit. This is mentioned in another part of the tax rules called section OB 64 or section RE 25.

The tax credit is added to your group’s list of credits on the day the replacement payment is made. You can find this credit listed in a special table (called O19) that keeps track of all the tax credits for consolidated imputation groups. It’s in row 10 of that table, under the heading “replacement payment under share-lending arrangement”.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519441.

Topics:
Money and consumer rights > Taxes
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“Removed rule about company group tax credits for foreign dividends”

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“Consolidated group receives imputation credit when member company gets credit transfer notice”

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

OP 15Consolidated ICA replacement payment to company under share-lending arrangement

  1. A consolidated imputation group has an imputation credit for the amount of an imputation credit attached under section OB 64 (Replacement payments) or treated as attached under section RE 25 (When amount of tax treated as imputation credit) to a replacement payment paid under a share-lending arrangement to a company that is part of the consolidated imputation group at the date of payment.

  2. The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 10 (replacement payment under share-lending arrangement).

  3. The credit date is the day the replacement payment is paid.

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