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Income Tax Act 2007

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

OP 30: Consolidated ICA refund of income tax

You could also call this:

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

When a consolidated imputation group gets a refund of income tax or provisional tax, they have to record it as an imputation debit. This means they need to subtract the refund amount from their imputation credits.

However, there are some exceptions to this rule. The group doesn’t have to record a debit for:

  1. A refund of income tax paid by a life insurance company for its policyholder income.
  2. A refund of income tax paid before a debit happens under section OP 42, but only if the refund is less than the debit amount.
  3. A refund of income tax or provisional tax paid to a local government.

The debit is recorded in a special table called “imputation debits of consolidated imputation groups”. It’s listed in row 4 of this table as a “refund of income tax”.

You need to record this debit on the day the refund is made.

This rule doesn’t apply to amounts that are already recorded as debits under section OP 35.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519472.

Topics:
Money and consumer rights > Taxes
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OP 29: Consolidated ICA allocation of provisional tax, or

“Sharing provisional tax within a group of companies”

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OP 31: Consolidated ICA amount applied to pay other taxes, or

“Using extra tax credit to pay other taxes in a consolidated group”

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

OP 30Consolidated ICA refund of income tax

  1. A consolidated imputation group has an imputation debit for the amount of a refund of income tax or provisional tax paid to the group. Subsection (2) overrides this subsection.

  2. The debit in subsection (1) does not include—

  3. a refund of income tax paid by a life insurer to satisfy its schedular income tax liability for schedular policyholder base income; or
    1. a refund of income tax paid before a debit arises under section OP 42 to the extent to which the amount of the refund is less than the amount of the debit; or
      1. a refund of income tax or provisional tax paid to a local authority.

        1. The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 4 (refund of income tax). The imputation debit in subsection (2)(b) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity).

        2. The debit date is the day the refund is made.

        3. This section does not apply to an amount that gives rise to a debit under section OP 35.

        Compare
        Notes
        • Section OP 30(2) heading: substituted, on , by section 452(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section OP 30(2): substituted, on , by section 452(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section OP 30(2)(b): amended, on , by section 148(1)(a) (and see section 148(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
        • Section OP 30(2)(c): inserted, on , by section 148(1)(b) (and see section 148(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
        • Section OP 30(3): amended, on , by section 452(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section OP 30(5) heading: added (with effect on 1 April 2008), on , by section 452(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section OP 30(5): added (with effect on 1 April 2008), on , by section 452(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section OP 30 list of defined terms life insurer: inserted, on , by section 452(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section OP 30 list of defined terms local authority: inserted, on , by section 148(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
        • Section OP 30 list of defined terms schedular income tax liability: added, on , by section 452(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section OP 30 list of defined terms schedular policyholder base income: added, on , by section 452(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).