Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 35B: ICA debit for transfer from tax pooling account for policyholder base liability

You could also call this:

“Life insurer gets imputation debit for tax pooling transfer to pay policyholder income tax”

If you are an ICA company and also a life insurer, you might need to transfer money from a tax pooling account to your tax account with the Commissioner. This transfer can happen when you need to pay tax on income from your policyholder base or from a life fund PIE that is a multi-rate PIE. When you make this transfer, you get an imputation debit for the amount you moved.

This debit is listed in a special table called ‘table O2: imputation debits’. You can find it in row 7B, which is called ‘debit for transfer from tax pooling account for policyholder base liability’.

The date of this debit is always recorded as the last day of the tax year, no matter when you actually made the transfer.

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 It might be out of date or be missing some parts.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

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3113445.

Topics:
Money and consumer rights > Taxes
Previous

OB 35: ICA transfer within tax pooling account, or

“Moving money in a tax pooling account affects company tax credits”

Next

OB 36: ICA refund of FDP, or

“This provision about ICA refunds of FDP was removed from the law in 2017”

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 35BICA debit for transfer from tax pooling account for policyholder base liability

  1. An ICA company has an imputation debit for the amount transferred from a tax pooling account to their tax account with the Commissioner, to the extent to which the company is a life insurer, and the amount satisfies its schedular income tax liability for schedular policyholder base income or its income tax liability for a life fund PIE that is a multi-rate PIE.

  2. The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 7B (debit for transfer from tax pooling account for policyholder base liability).

  3. The debit date is the last day of the tax year.

Notes
  • Section OB 35B: inserted, on , by section 392(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).