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Income Tax Act 2007

Tax credits and other credits - Tax credits for imputation credits

LE 4B: Trustees for certain close companies

You could also call this:

“Rules for trustees when a close company gets trust income”

When you have a tax credit under section LE 1 and you are a trustee of a trust, this section applies if a close company gets beneficiary income from the trust. You are treated as getting the company’s beneficiary income as a beneficiary, but only to the extent that section HC 38 applies. This means you are affected by the company’s beneficiary income in certain situations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS960457.

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Part L Tax credits and other credits
Tax credits for imputation credits

LE 4BTrustees for certain close companies

  1. This section applies when a person who has a tax credit under section LE 1 is the trustee of a trust and a close company derives beneficiary income from the trust.

  2. To the extent to which section HC 38 (Beneficiary income of certain close companies) applies, the person is treated as deriving the company’s beneficiary income as a beneficiary.

Notes
  • Section LE 4B: inserted, on , by section 104(1) (and see section 104(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section LE 4B(1): amended, on , by section 106 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).