Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - Terminating provisions

OZ 1: No imputation credit for pre-imputation tax paid

You could also call this:

“No tax credits for shareholders from company taxes paid before the imputation system began”

When a company pays income tax for a year before the imputation system started, it doesn’t get an imputation credit in its imputation credit account. This means you can’t use that tax payment to give shareholders a tax credit on their dividends. The imputation system is a way for companies to pass on the benefit of tax they’ve already paid to their shareholders, but it only applies to tax paid after the system began.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519710.

Topics:
Money and consumer rights > Taxes
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“Removed rule about transferring funds between company accounts in insurance groups”

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OZ 2: No imputation debit for pre-imputation refund, or

“Old tax refunds don't reduce a company's current tax credits”

Part O Memorandum accounts
Terminating provisions

OZ 1No imputation credit for pre-imputation tax paid

  1. No imputation credit arises in the imputation credit account of an imputation credit account (ICA) company for a payment of income tax imposed for a pre-imputation income year.

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