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Income Tax Act 2007

General collection rules - Refunds - ICA companies

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

You could also call this:

“Rules for refunds and transfers when a company is no longer an ICA company”

When a company stops being an ICA company, there are limits on how much money they can get back or move around. If you were an ICA company during a tax year and you’re allowed to get a refund or transfer money under [section RM 13(1)], there’s a rule you need to follow. The total amount you can get back or transfer can’t be more than the final balance of your imputation credit account. This final balance is shown as a debit in [section OB 56], which is recorded just before you stop being an ICA company.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520443.

Topics:
Money and consumer rights > Taxes
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RM 13: Limits on refunds for ICA companies, or

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

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RM 15: Changes in credit balances, or

“How refunds and shareholder changes affect your tax credit balance”

Part R General collection rules
Refunds: ICA companies

RM 14Limits on refunds when company stops being ICA company

  1. This section applies when a company stops being an ICA company and is entitled to have a refund or to make a transfer under section RM 13(1) for a tax year in which it was an ICA company.

  2. The total amount refunded or transferred must be no more than the final balance of the imputation credit account arising as a debit under section OB 56 (ICA final balance) just before the company stopped being an ICA company.

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