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 35: Consolidated ICA refund of tax credit

You could also call this:

“Refunds or transfers of tax credits for consolidated imputation groups”

When you’re part of a consolidated imputation group, you need to know about imputation debits. These are reductions in your group’s imputation credit account.

Your group gets an imputation debit when:

You transfer money under section LA 6(2)(d), but this doesn’t lead to an income tax refund. The debit is for the amount you transfer.

You get a refund under section LA 6(2)(e). The debit is for the amount of the refund.

There’s a special rule if your group gets a refundable tax credit after a debit under section OP 42. In this case, your imputation debit is reduced. The reduction is either the amount of the earlier debit or the difference between the tax credit and the credits in your account since the earlier debit, whichever is smaller.

These debits are recorded in a table called “imputation debits of consolidated imputation groups” in row 9.

The date of the debit depends on what type it is. For transfers, it’s the day you make the transfer. For refunds, it’s the day you get the refund.

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 It might be out of date or be missing some parts.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=DLM1519482.

Topics:
Money and consumer rights > Taxes
Previous

OP 34: Consolidated ICA refund of FDP, or

“Refund process for an old tax type removed from law for company groups”

Next

OP 36: Consolidated ICA overpayment of FDP, or

“Outdated rule about overpaid foreign dividend tax for company groups”

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

OP 35Consolidated ICA refund of tax credit

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

  2. the amount of a transfer under section LA 6(2)(d) (Remaining refundable credits: PAYE, RWT, and certain other items) to the extent to which the transfer does not lead to a refund of income tax:
    1. the amount of a refund under section LA 6(2)(e).

        1. Repealed

        2. Despite subsection (1), a consolidated imputation group has an imputation debit for a refundable tax credit arising for a group company in a tax year after a debit arises under section OP 42, reduced by the lesser of—

        3. the debit under section OP 42:
          1. the amount by which the refundable tax credit exceeds the total credits to the group’s imputation credit account, for amounts satisfying the group’s income tax liability, during the period from the date of the debit to the date on which the credit balance is to be determined under sections RM 13 and RM 14 (which relate to limits on refunds for ICA companies).

            1. The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 9 (refund of tax credit).

            2. The debit date is—

            3. for a debit referred to in subsection (1)(a), the day the amount is transferred:
              1. for a debit referred to in subsection (1)(b), the day the amount is refunded.

                  Compare
                  Notes
                  • Section OP 35(1): substituted (with effect on 1 April 2008), on , by section 455(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                  • Section OP 35(1)(c): repealed (with effect on 1 April 2009), on , by section 236(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section OP 35(1B) heading: repealed, on , pursuant to section 236(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section OP 35(1B): repealed, on , by section 236(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section OP 35(1C) heading: inserted, on , by section 175(1) (and see section 175(2) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                  • Section OP 35(1C): inserted, on , by section 175(1) (and see section 175(2) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                  • Section OP 35(3): substituted (with effect on 1 April 2008), on , by section 455(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                  • Section OP 35(3)(c): repealed (with effect on 1 April 2009), on , by section 236(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section OP 35 list of defined terms FDP: repealed, on , by section 236(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section OP 35 list of defined terms FDP account: repealed, on , by section 236(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section OP 35 list of defined terms pay: added (with effect on 1 April 2008), on , by section 455(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                  • Section OP 35 list of defined terms tax credit: added (with effect on 1 April 2008), on , by section 455(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).