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Income Tax Act 2007

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

OP 37: Consolidated ICA group company’s debit

You could also call this:

“Group debit when a company's imputation credit account would be negative”

If you’re part of a consolidated imputation group, you need to know about a special type of debit. This debit happens when one of the companies in your group would normally have a debit in their own imputation credit account. But here’s the important part: instead of the debit going to that company’s account, it goes to the group’s account.

This only happens if the debit would create or make bigger a negative balance in the company’s account. When this occurs, the debit amount goes to the group’s account instead. This is listed in a special table for group debits.

It’s important to understand that even though the amount could have been a debit for the company, it doesn’t actually go into the company’s account. Instead, it becomes a debit for the whole group.

The date of this group debit is the same day it would have been debited from the company’s account if this rule didn’t exist. This helps keep track of when these debits occur.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519486.

Topics:
Money and consumer rights > Taxes
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“Outdated rule about overpaid foreign dividend tax for company groups”

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“Removed rule about consolidated imputation group transfers for overseas income”

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

OP 37Consolidated ICA group company’s debit

  1. A consolidated imputation group has an imputation debit for an amount to the extent to which the amount would, in the absence of subsection (3), give rise to—

  2. an imputation debit described in a row of table O2: imputation debits, in the imputation credit account of a group company; and
    1. an imputation debit that would create or increase a debit balance in the group company’s imputation credit account.

      1. The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 11 (group company’s debit).

      2. The amount referred to in subsection (1) does not give rise to an imputation debit in the group company’s account although otherwise eligible to be one.

      3. The debit date is the day that the amount would have been debited to the imputation credit account of the group company in the absence of subsection (3).

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