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Income Tax Act 2007

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

OP 41B: Consolidated ICA debit for unused tax payment of departing member

You could also call this:

“Group can record debit when departing member's unused tax payment remains with IRD”

You can choose to have an imputation debit for your consolidated imputation group if certain conditions are met. This can happen when a member of your group makes a payment that creates an imputation credit, but then leaves the group. The payment must still be held by the Commissioner or a tax pooling intermediary and not used to pay any tax, except for the company’s provisional tax.

The amount of the debit will be the same as the imputation credit that came from the payment. This debit is listed in a special table for consolidated imputation groups.

The date of the debit will be the same as the date when the credit was added to your group’s imputation credit account for the unused payment.

If you want to know more about how the credit was created, you can look at section OP 7 or OP 8.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS837012.

Topics:
Money and consumer rights > Taxes
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OP 41: Consolidated ICA credit transfer by company, or

“A company in a group transfers tax credits to another company in the same group”

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OP 41C: Consolidated ICA debit for unused tax payment of departing part of group, or

“Debit for unused tax payment when part of group leaves”

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

OP 41BConsolidated ICA debit for unused tax payment of departing member

  1. A consolidated imputation group (the group) may choose to have an imputation debit for the amount of an imputation credit (the credit) in the group’s imputation credit account if—

  2. the credit arises under section OP 7 or OP 8 from a payment (the unused imputation credit payment) by a member of the consolidated imputation group (the company); and
    1. the company ceases to be a member of the group after making the unused imputation credit payment; and
      1. when the company ceases to be a member of the group, the unused imputation credit payment is held by the Commissioner or a tax pooling intermediary without having been applied to satisfy a tax liability, other than a liability of the company for provisional tax.

        1. The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 15B (member of consolidated imputation group leaving after making unused imputation credit payment).

        2. The debit date is the date of the credit to the consolidated imputation group’s imputation credit account for the unused imputation credit payment.

        Notes
        • Section OP 41B: inserted (with effect on 1 April 2021), on , by section 96(1) (and see section 96(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).