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Income Tax Act 2007

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

OP 43: Consolidated ICA breach of imputation ratio

You could also call this:

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

When a group of companies share their tax credits, they’re called a consolidated imputation group. This group can get a tax debit if one of the companies in the group doesn’t follow the rules about sharing tax credits fairly.

The amount of this tax debit is the same as what the company would have owed if it wasn’t part of the group. This rule helps make sure companies don’t avoid owing tax by being part of a group.

You can find information about this tax debit in two places. One is in a table about tax debits for consolidated imputation groups. The other is in a table about tax debits for individual companies.

The date when this tax debit is recorded is the last day of the tax year. This means the group has until the end of the year to make sure they’re following the rules about sharing tax credits fairly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519501.

Topics:
Money and consumer rights > Taxes
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OP 42: Consolidated ICA debit for loss of shareholder continuity, or

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OP 44: Consolidated ICA debit for policyholder base imputation credits, or

“Group records imputation debit when life insurer's dividend credits go to policyholder base”

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

OP 43Consolidated ICA breach of imputation ratio

  1. A consolidated imputation group has an imputation debit for a tax year for the amount of a debit under section OB 43 (ICA breach of imputation ratio) that would arise in the imputation credit account of a group company in the absence of section OP 5(3).

  2. The group’s imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 17 (breach of imputation ratio). The group company’s imputation debit in subsection (1) is referred to in table O2: imputation debits, row 16 (breach of imputation ratio).

  3. The debit date is the last day of the tax year.

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