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Income Tax Act 2007

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

OP 17: Consolidated ICA resident withholding tax withheld

You could also call this:

“Credit for tax withheld from interest or dividends paid to consolidated imputation groups”

If you’re part of a consolidated imputation group, you get an imputation credit for resident withholding tax (RWT). This happens when a company in your group receives money that has RWT taken out of it. The money can be from things like interest or dividends, but it can’t be from policyholder base income.

This credit is listed in a special table called ‘imputation credits of consolidated imputation groups’. You can find it in row 12, which is labelled ‘RWT withheld’.

You get this credit on the same day that the interest or dividend is paid to your group. This is important because it affects when you can use the credit.

Remember, this rule is part of section RA 9(1)(b), which talks about how withheld amounts are treated as if they’ve been received.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519445.

Topics:
Money and consumer rights > Taxes
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OP 16B: Consolidated ICA credit transfer to departing consolidated imputation group for unused tax payment, or

“Transfer of unused tax credit when a smaller group leaves a larger tax group”

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OP 18: Consolidated ICA transfer from group company’s FDP account, or

“Group company account transfers rule no longer applies”

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

OP 17Consolidated ICA resident withholding tax withheld

  1. A consolidated imputation group has an imputation credit for resident withholding tax (RWT) that is treated under section RA 9(1)(b) (Treatment of amounts withheld as received) as derived by a group company other than as policyholder base income.

  2. The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 12 (RWT withheld).

  3. The credit date is the day the interest or dividend relating to the resident passive income is paid.

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Notes
  • Section OP 17(1): amended, on , by section 449(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section OP 17 list of defined terms policyholder base income: inserted, on , by section 449(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).