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Income Tax Act 2007

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

OP 42: Consolidated ICA debit for loss of shareholder continuity

You could also call this:

“Tax credit group records a debit when ownership changes significantly”

When a group of companies that share their tax credits (called a consolidated imputation group) loses shareholder continuity, they have to record a debit in their tax credit account. This debit is for the amount of unused tax credits they had at the time they lost shareholder continuity.

You can find this debit listed in a table that shows all the debits for consolidated imputation groups. It’s in row 16 of that table, and it’s called “debit for loss of shareholder continuity”.

The group has to record this debit at the exact moment when they lose shareholder continuity. This means when the ownership of the group changes enough that they no longer meet the rules for keeping their tax credits.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519499.

Topics:

Money and consumer rights > Taxes

OP 41C: Consolidated ICA debit for unused tax payment of departing part of group, or

“Debit for unused tax payment when part of group leaves”

OP 43: Consolidated ICA breach of imputation ratio, or

“Tax debit for consolidated company groups not sharing tax credits fairly”

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

OP 42Consolidated ICA debit for loss of shareholder continuity

A consolidated imputation group has an imputation debit for the amount of an imputation credit retained in the group’s imputation credit account and unused at the time at which shareholder continuity is lost.
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity).
The debit arises at the time shareholder continuity is lost.

Compare

2004 No 35 ss ME 12(1)(h), (2)(g), ME 13(2)

Notes

Section OP 42(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 95(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OP 42(3) heading: substituted (with effect on 1 April 2008), on 7 December 2009, by section 95(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OP 42(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 95(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).