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Income Tax Act 2007

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

OP 33: Consolidated ICA transfer within tax pooling account

You could also call this:

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

When a group of companies that share tax credits has money in a special tax account, and they’ve already gotten a credit for it, they can give that money to someone else. If they do this, they need to record it as a debit in their tax credit account.

This debit is listed in a special table that keeps track of all the debits for groups like this. It’s called “transfer to tax pooling account”.

The date of this debit depends on a few things:

If the amount they’re giving away is less than or equal to how many credits they had at the end of the last tax year, the debit date is the last day of that year.

If there’s still more to give away after that, and it’s less than or equal to the credits they have on the day they’re giving it away, the debit date is the day they give it away.

If there’s still more left after that, the debit date for the rest is the last day of the previous tax year.

This rule helps make sure that groups of companies are keeping track of their tax credits properly when they share money from their special tax accounts.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519478.

Topics:
Money and consumer rights > Taxes
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“Refund from a shared tax savings account affects group's tax credit balance”

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OP 33B: Consolidated ICA debit for transfer from tax pooling account for policyholder base liability, or

“Tax pooling transfer for insurance-related taxes creates a group tax debit”

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

OP 33Consolidated ICA transfer within tax pooling account

  1. This section applies for a consolidated imputation group when—

  2. 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
    1. the intermediary transfers the entitlement from the group to another person.

      1. The consolidated imputation group has an imputation debit for the amount of the transfer.

      2. The imputation debit in subsection (2) is referred to in table O20: imputation debits of consolidated imputation groups, row 7 (transfer to tax pooling account).

      3. The debit date for the debit is—

      4. 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:
        1. the day the transfer 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 transfer:
          1. the last day of the previous tax year for the remainder of the imputation debit.

            Compare
            Notes
            • Section OP 33 heading: substituted (with effect on 1 April 2008), on , by section 108(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
            • Section OP 33(1): substituted (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 108(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
            • Section OP 33(4)(b): amended (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 108(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).