Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
OP 46: Consolidated ICA tax advantage arrangement
or “Tax credit repayment for consolidated groups using unfair tax advantage schemes”
You could also call this:

“Final balance owed when a consolidated tax credit group ends”

When a group of companies that share their tax credits (called a consolidated imputation group) stops being a group, they need to deal with any leftover credit in their shared tax account. This leftover credit becomes a debit, which is like owing money.

The day before the group stops being a consolidated imputation group is when this debit is recorded. It’s like settling up your accounts before you close them.

You can find this rule in a special table that lists all the debits for consolidated imputation groups. It’s in row 21 of that table, under the heading “final balance”.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: OP 48: Consolidated ICA refund of NRWT

or “Repayment of non-resident withholding tax refund by consolidated group with Australian company”
Next

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

OP 47Consolidated ICA final balance

  1. A consolidated imputation group has an imputation debit for a credit balance in the imputation credit account when the group stops being a consolidated imputation group.

  2. The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 21 (final balance).

  3. The debit date is the day before the group stops being a consolidated imputation group.

Compare