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Income Tax Act 2007

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

OP 44: Consolidated ICA debit for policyholder base imputation credits

You could also call this:

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

When a group company that is a life insurer receives a dividend with an imputation credit, your consolidated imputation group may have to record an imputation debit. This happens when the dividend is assigned to the life insurer’s policyholder base. The amount of the debit is the same as the imputation credit attached to the dividend.

This rule doesn’t apply if the debit has already been accounted for under section OP 42. The debit is listed in a special table called ‘imputation debits of consolidated imputation groups’ as row 18.

You need to record this debit on the last day of the tax year.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519503.

Topics:
Money and consumer rights > Taxes
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OP 43: Consolidated ICA breach of imputation ratio, or

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

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OP 45: Consolidated ICA redemption debit, or

“Reducing group tax credits when a fund manager receives money from selling units or investments”

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

OP 44Consolidated ICA debit for policyholder base imputation credits

  1. A consolidated imputation group has an imputation debit for the amount of an imputation credit attached to a dividend derived by a group company, to the extent to which it is—

  2. derived by a group company that is a life insurer; and
    1. apportioned to that life insurer's policyholder base; and
      1. not affected by a debit under section OP 42.

        1. The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 18 (debit for policyholder base imputation credits).

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

        Notes
        • Section OP 44: substituted, on , by section 458(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section OP 44(1): replaced (with effect on 1 July 2010), on , by section 122(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).