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Income Tax Act 2007

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

OP 41: Consolidated ICA credit transfer by company

You could also call this:

“A company in a group transfers tax credits to another company in the same group”

If you’re part of a group of companies that share tax credits, you need to know about something called a consolidated imputation credit. This happens when one company in the group gives some of its tax credits to another company in the group.

When a company in your group pays a dividend and attaches some of these shared tax credits to it, your group loses those credits. This loss of credits is called an imputation debit. For this to happen, two things must be true:

  1. The company paying the dividend must be part of your group when it makes the payment.
  2. The company must tell everyone about this transfer of credits in a special notice.

Your group’s imputation debit is recorded in a special table. It’s listed in row 15 of the table, under “credit transfer”.

The date of this debit is the same day the dividend is paid out.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519497.

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OP 40: Consolidated ICA returning share transfer, or

“Tax credit reduction for group companies when paying dividends on borrowed shares”

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OP 41B: Consolidated ICA debit for unused tax payment of departing member, or

“Group can record debit when departing member's unused tax payment remains with IRD”

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

OP 41Consolidated ICA credit transfer by company

  1. A consolidated imputation group has an imputation debit for the amount of an imputation credit attached to a dividend paid to a company if—

  2. at the time of payment, the company is a part of the consolidated imputation group; and
    1. the amount is shown in a credit transfer notice given by the company.

      1. The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 15 (credit transfer).

      2. The debit date is the day the dividend is paid.

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