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Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 23B: ICA transfer from consolidated imputation group to departing member for unused tax payment

You could also call this:

“Transfer of unused tax credits when leaving a group”

If you stop being part of a group that shares tax credits, you can choose to keep some of the unused tax credits. This happens when your company has paid tax that hasn’t been used yet. The amount you can keep is the same as the amount the group loses when you leave. This unused tax credit comes from payments you made while you were part of the group. The date of this credit is the same as when the group first got the credit for your payment.

You can find more information about this in a table called ‘O1: imputation credits’, in row 21B. This row talks about unused tax credit payments made by a member before they leave the group.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS836950.

Topics:
Money and consumer rights > Taxes
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OB 23: ICA credit transfer to company, or

“Receiving an imputation credit from another company's transfer notice”

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OB 24: ICA credit on resident’s restricted amalgamation, or

“Tax credit for companies combining in a special way”

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 23BICA transfer from consolidated imputation group to departing member for unused tax payment

  1. An ICA company that ceases to be a member of a consolidated imputation group may choose to have an imputation credit for the amount of an imputation debit that the consolidated imputation group has under section OP 41B (Consolidated ICA debit for unused tax payment of departing member) because, immediately before the ICA company ceases to be a member, the imputation credit account of the consolidated imputation group contains an imputation credit arising under section OP 7 or OP 8 (which relate to consolidated ICAs) from a payment (the unused imputation credit payment) that is made by the ICA company when the ICA company is a member of the consolidated imputation group and is held, unused, by the Commissioner or a tax pooling intermediary when the membership ceases.

  2. The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 21B (unused imputation credit payment by member before departure).

  3. The credit date is the date of the credit to the imputation credit account of the consolidated imputation group for the unused imputation credit payment.

Notes
  • Section OB 23B: inserted (with effect on 1 April 2021), on , by section 92(1) (and see section 92(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).