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New Zealand law explained for everyone

Income Tax Act 2007

Income - Income specific to certain entities

CV 19: Additional income for certain imputation credits

You could also call this:

“Extra income from certain tax credits on company dividends”

This part of the law talks about when you might get extra income because of something called imputation credits. It applies when you have income that counts for tax credits on imputation credits. This happens when a special rule called section LE 1(4B) applies.

If you have this kind of income and it includes an imputation credit, you get some extra income. The amount of extra income is the same as the tax credit you get for the imputation credit under section LE 8B.

But there’s an exception. You don’t get this extra income if your LE 1(4B) income is related to FIF income or loss that’s worked out using two special methods. These methods are called the comparative value method and the deemed rate of return method.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6034606.

Topics:
Money and consumer rights > Taxes
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Part C Income
Income specific to certain entities

CV 19Additional income for certain imputation credits

  1. This section applies when a person has assessable income for the purposes of section LE 1 (Tax credits for imputation credits) because section LE 1(4B) applies (the LE 1(4B) income), and the LE 1(4B) income includes an imputation credit.

  2. For the income year to which the LE 1(4B) income relates, the person derives an amount of income equal to the amount of the tax credit for the imputation credit under section LE 8B (Dividend from certain FIF interests) except if the LE 1(4B) income relates to FIF income or loss calculated under—

  3. the comparative value method; or
    1. the deemed rate of return method.

      Notes
      • Section CV 19: inserted, on , by section 16 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
      • Section CV 19(2): replaced (with effect on 1 April 2014), on , by section 23(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
      • Section CV 19 list of defined terms comparative value method: inserted (with effect on 1 April 2014), on , by section 23(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
      • Section CV 19 list of defined terms deemed rate of return method: inserted (with effect on 1 April 2014), on , by section 23(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
      • Section CV 19 list of defined terms FIF income: inserted (with effect on 1 April 2014), on , by section 23(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
      • Section CV 19 list of defined terms FIF loss: inserted (with effect on 1 April 2014), on , by section 23(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).