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Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 46B: ICA transfer from group company to loss-using group company

You could also call this:

“Transfer of tax credits between companies in the same group when one is using a loss”

If you’re an ICA company, you can transfer an imputation credit to another company in your group that is using a tax loss. This transfer happens when you make an election under section OB 83. The company receiving the credit must be using a tax loss that was made available under section IC 5.

When you transfer this imputation credit, you get an imputation debit. This means the amount of the credit you transferred is subtracted from your imputation credit account. This debit is listed in a special table called “table O2: imputation debits” under row 19B.

The date of this debit is the same day that you transfer the imputation credit to the other 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=DLM7224134.

Topics:
Money and consumer rights > Taxes
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Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 46BICA transfer from group company to loss-using group company

  1. An ICA company that transfers an imputation credit under an election under section OB 83 to a company that uses a tax loss made available under section IC 5 (Company B using company A’s tax loss) has an imputation debit for the amount of the imputation credit transferred.

  2. The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 19B (transfer of credit to loss-using group company).

  3. The debit date is the day on which the imputation credit is transferred.

Notes
  • Section OB 46B: inserted (with effect on 1 October 2016 and applying for the 2017–18 and later income years), on , by section 202(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).