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Income Tax Act 2007

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

OP 31: Consolidated ICA amount applied to pay other taxes

You could also call this:

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

If you’re part of a consolidated imputation group, you need to know about imputation debits. These happen when your group uses extra money to pay other taxes.

Your group gets an imputation debit when you use overpaid income tax to pay other amounts you owe to Inland Revenue. This also happens if you use extra money from a tax pooling account to pay any amounts you owe, except for income tax.

But there are some exceptions. You don’t get a debit if you use the overpaid income tax to pay income tax you owe. Also, if you’ve already had a debit because you lost shareholder continuity, you won’t get another debit for using overpaid tax up to that amount.

The day you use the money to pay other taxes is when the debit happens.

Remember, this rule doesn’t apply if you’ve already got a debit 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=DLM1519474.

Topics:
Money and consumer rights > Taxes
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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”

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OP 32: Consolidated ICA refund from tax pooling account, or

“Refund from a shared tax savings account affects group's tax credit balance”

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

OP 31Consolidated ICA amount applied to pay other taxes

  1. A consolidated imputation group has an imputation debit for—

  2. an amount of overpaid income tax applied to pay an amount due under the Inland Revenue Acts:
    1. an increased amount of tax as described in section RP 17B(3) (Tax pooling accounts and their use) applied to pay an amount due under the Inland Revenue Acts other than income tax.

      1. The debit referred to in subsection (1) does not include overpaid income tax to the extent to which it is—

      2. applied to satisfy an income tax liability; or
        1. for an amount paid before an imputation debit arises under section OP 42, no more than the debit for loss of shareholder continuity.

          1. The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 5 (amount applied to pay other taxes). The imputation debit in subsection (2) 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 amount is applied.

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

          Compare
          Notes
          • Section OP 31(1): replaced, on , by section 149(1) (and see section 149(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
          • Section OP 31(5) heading: added (with effect on 1 April 2008), on , by section 453(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
          • Section OP 31(5): added (with effect on 1 April 2008), on , by section 453(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).