Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

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

OP 32: Consolidated ICA refund from tax pooling account

You could also call this:

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

You’re part of a group of companies that use a special system for managing tax credits. This system is called a consolidated imputation group.

Sometimes, your group might put money into a tax pooling account. This is like a shared savings account for taxes. When you do this, you get a credit in your group’s tax account.

If you later decide to take money out of the tax pooling account, your group will get a debit. This means your tax credit balance will go down.

The amount of the debit depends on when you take the money out. If you take it out in the same tax year you put it in, the debit will happen on the day you get the refund. If you take it out after the tax year ends, the debit might be split across different dates.

The system keeps track of these credits and debits in special tables. These tables help the tax office know how much tax credit your group has at any time.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519476.

Topics:

Money and consumer rights > Taxes

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

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

OP 33: Consolidated ICA transfer within tax pooling account, or

“Groups can transfer tax pool credits and must record it”

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

OP 32Consolidated ICA refund from tax pooling account

This section applies for a consolidated imputation group when—
the group has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under sections OP 8 and OP 9; and
the intermediary refunds the amount from the tax pooling account to the group.

The consolidated imputation group has an imputation debit for the tax year for the amount of the refund.
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 3 (deposit in tax pooling account) or row 4 (transfer from tax pooling account). The imputation debit in subsection (2) is referred to in table O20: imputation debits of consolidated imputation groups, row 6 (refund from tax pooling account).
The debit date for the debit is—
the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the imputation credit account on that date:
the day the refund is made to the extent of the remaining amount of the debit that is no more than the credit balance in the imputation credit account on the day of refund:
the last day of the previous tax year for the remainder of the imputation debit.

Compare

2004 No 35 s ME 12(1)(da), (2)(da)

Notes

Section OP 32(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 107(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).