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Income Tax Act 2007

Memorandum accounts - Memorandum accounts of consolidated groups - Imputation credits of consolidated imputation groups

OP 16B: Consolidated ICA credit transfer to departing consolidated imputation group for unused tax payment

You could also call this:

“Transfer of unused tax credit when a smaller group leaves a larger tax group”

When you’re part of a group that handles tax payments together (called a consolidated imputation group), and your smaller group leaves the bigger group, you can choose to take some of the tax credit with you. This happens if your smaller group made a tax payment that wasn’t used yet when you left the bigger group.

The amount you can take is the same as the amount the bigger group had to reduce their tax credits by when you left. This is because the bigger group can’t keep the unused tax credit that came from your payment.

The date for this credit is the same day that the bigger group originally got the credit for your payment.

This rule is part of a table that lists all the ways a consolidated imputation group can get tax credits. It’s listed as row 11B in that table.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS836998.

Topics:

Money and consumer rights > Taxes

OP 16: Consolidated ICA credit transfer to company, or

“Consolidated group receives imputation credit when member company gets credit transfer notice”

OP 17: Consolidated ICA resident withholding tax withheld, or

“Credit for tax withheld from interest or dividends paid to consolidated imputation groups”

Part O Memorandum accounts
Memorandum accounts of consolidated groups: Imputation credits of consolidated imputation groups

OP 16BConsolidated ICA credit transfer to departing consolidated imputation group for unused tax payment

A consolidated imputation group (the departing group) that ceases to be a part of a consolidated imputation group (the parent group) may choose to have an imputation credit for the amount of an imputation debit that the parent group has under section OP 41C because, immediately before the departing group ceases to be part of the parent group, the imputation credit account of the parent group contains an imputation credit arising under section OP 7 or OP 8 from a payment (the unused imputation credit payment) that is made by the departing group when the departing group is part of the parent group and is held, unused, by the Commissioner or a tax pooling intermediary when the departing group ceases to be part of the parent group.
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 11B (unused imputation credit payment by departing consolidated group before departure).
The credit date is the day of the credit to the imputation credit account of the parent group for the unused imputation credit payment.

Notes

Section OP 16B: inserted (with effect on 1 April 2021), on 31 March 2023, by section 95(1) (and see section 95(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).