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Income Tax Act 2007

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

OP 29: Consolidated ICA allocation of provisional tax

You could also call this:

“Sharing provisional tax within a group of companies”

When a group of companies shares their tax credits, they’re called a consolidated imputation group. If a company in this group hasn’t paid enough tax, the group can give some of their provisional tax to that company. This is called allocation of provisional tax.

When the group does this, they get an imputation debit. An imputation debit is like a reduction in their tax credits. The amount of the debit is the same as the amount of provisional tax they gave to the other company.

This debit is listed in a special table that keeps track of all the debits for consolidated imputation groups. It’s in row 3 of that table.

The date of the debit is the day that the group tells the tax department (the Commissioner) about giving the provisional tax to the other company.

You can find more information about how groups of companies can share provisional tax in section RC 32.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519470.

Topics:
Money and consumer rights > Taxes
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OP 28: Consolidated ICA payment of dividend, or

“Consolidated group gets an imputation debit when paying dividends with attached credits”

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OP 30: Consolidated ICA refund of income tax, or

“Refund of income tax for consolidated groups and its impact on imputation credits”

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

OP 29Consolidated ICA allocation of provisional tax

  1. A consolidated imputation group has an imputation debit for an amount of provisional tax allocated by the group under section RC 32 (Wholly-owned groups of companies) to an underpaid company.

  2. The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 3 (allocation of provisional tax).

  3. The debit date is the day the Commissioner is notified of the allocation.

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