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Income Tax Act 2007

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

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

You could also call this:

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

You can choose to have an imputation debit for your consolidated imputation group (called the main group) in certain situations. This can happen when part of your group (called the part group) makes a payment that creates an imputation credit for the main group. If the part group then leaves the main group, and the payment hasn’t been used to pay any tax (except for the part group’s provisional tax), you can choose to have this debit.

The amount of the debit will be the same as the imputation credit that came from the part group’s 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 the main group’s imputation credit account.

To understand more about how imputation credits are 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=LMS837014.

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

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

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OP 42: Consolidated ICA debit for loss of shareholder continuity, or

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

OP 41CConsolidated ICA debit for unused tax payment of departing part of group

  1. A consolidated imputation group (the main group) may choose to have an imputation debit for the amount of an imputation credit (the credit) in the main 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 consolidated group (the part group) that is part of the main group; and
    1. the part group ceases to be a part of the main group after making the unused imputation credit payment; and
      1. when the part group ceases to be a part of the main 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 part group for provisional tax.

        1. The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 15C (part 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 41C: 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).