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Income Tax Act 2007

Memorandum accounts - Terminating provisions

OZ 15: Attaching imputation credits and notional distributions: modifying amounts

You could also call this:

“Adjusting imputation credits and notional distributions during tax rate changes”

This law is about how statutory producer boards and co-operative companies can attach imputation credits and make notional distributions during a special time called the transitional period. Here’s what you need to know:

If a board or company wants to pay cash or make a notional distribution during this time, and they have credit in their imputation credit account from the old company tax rate, they can choose to use 30% as the tax rate in certain calculations.

For statutory producer boards, they can use 30% when working out how to attach imputation credits to cash distributions or when calculating notional distributions that are dividends.

For co-operative companies, they can also use 30% when figuring out cash distributions or notional distributions that are dividends. However, this doesn’t apply to Maori authorities.

These rules help boards and companies adjust their calculations during the transitional period when tax rates are changing.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1632289.

Topics:
Money and consumer rights > Taxes
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Part O Memorandum accounts
Terminating provisions

OZ 15Attaching imputation credits and notional distributions: modifying amounts

  1. This section applies when—

  2. a statutory producer board or a co-operative company determines to pay a cash distribution or make a notional distribution in the transitional period; and
    1. the board or company has a credit balance in its imputation credit account from income, expenditure, memorandum account debits, credits, and balances, refunds, tax, tax credits, transfers, amounts withheld, or other items dealt with, arising, or calculated using an old company tax rate.

      1. In the calculation under section OB 73(4) (Statutory producer boards attaching imputation credits to cash distributions), the board may choose to treat item tax rate in the formula as 30%.

      2. In the calculation under section OB 75(2) (Statutory producer boards' notional distributions that are dividends), the board may choose to treat item tax rate in the formula as 30%.

      3. In the calculation under sections OB 78(3) and OB 78B(3) (which relate to co-operative companies making cash distributions), the company may choose to treat item tax rate in the formula as 30%. This subsection does not apply to a Maori authority.

      4. In the calculation under section OB 80(2) (Co-operative companies' notional distributions that are dividends), the company may choose to treat item tax rate in the formula as 30%. This subsection does not apply to a Maori authority.

      Notes
      • Section OZ 15: added, on , by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
      • Section OZ 15(2): amended, on , by section 22(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
      • Section OZ 15(3): amended, on , by section 22(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
      • Section OZ 15(4): amended, on , by section 73 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
      • Section OZ 15(4): amended, on , by section 22(c) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
      • Section OZ 15(5): amended, on , by section 22(d) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
      • Section OZ 15 compare note: repealed (with effect on 1 April 2008), on , by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).