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RM 12: Reduction in provisional tax liability
or “How to get money back when you've paid too much provisional tax”
You could also call this:

“Rules for tax refunds and transfers for imputation credit account companies”

When you’re an ICA company, there are limits on how much money you can get back or transfer. This applies to refunds of income tax and transfers within wholly-owned groups of companies. However, these limits don’t apply to provisional tax paid using the AIM method.

The amount you can get back or transfer is limited by how much credit you have in your imputation credit account. This is checked at certain times:

The last day of the tax year that just ended. The last day of a period when you had to file a return under section 70(1) of the Tax Administration Act 1994. The last day of a period when you filed an annual ICA return.

There’s a special rule if you have extra time to file your return for the most recent tax year, and you haven’t filed any ICA returns for periods after that tax year started. In this case, the limit is based on your credit balance on the last day of the most recent period for which you filed an annual ICA return.

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Next up: RM 14: Limits on refunds when company stops being ICA company

or “Rules for refunds and transfers when a company is no longer an ICA company”
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Part R General collection rules
Refunds: ICA companies

RM 13Limits on refunds for ICA companies

  1. This section applies when an ICA company is entitled to—

  2. a refund of income tax under sections RM 2, RM 4, and RM 5, other than a refund of provisional tax paid under the AIM method; or
    1. transfer an amount under section RC 32 (Wholly-owned groups of companies), other than a transfer of provisional tax paid under the AIM method.

      1. The amount of the refund or transfer must be no more than the credit balance of the ICA company in the imputation credit account at the latest of the following dates:

      2. the last day of the tax year that has just ended:
        1. the last day of a period for which the company is required to file a return under section 70(1) of the Tax Administration Act 1994:
          1. the last day of a period for which the company filed an annual ICA return under section 70(3) of that Act.

            1. The amount of the refund or transfer must be no more than the credit balance of the ICA company in the imputation credit account on the last day of the most recent period for which the company has filed an annual ICA return if, when the ICA company becomes entitled to the refund or transfer,—

            2. the ICA return for the most recent tax year that has ended (the last tax year) is not yet due because the company has an extension of time to file that return; and
              1. the ICA company has filed an ICA return for no period that is referred to in subsection (2)(a) to (c) and ends after the beginning of the last tax year.

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                Notes
                • Section RM 13(1)(a): amended, on , by section 42(1) (and see section 42(3) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                • Section RM 13(1)(a): amended (with effect on 1 April 2013), on , by section 91 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                • Section RM 13(1)(b): amended, on , by section 42(2) (and see section 42(3) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                • Section RM 13(3) heading: replaced, on , by section 283 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section RM 13(3): replaced, on , by section 283 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).