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Income Tax Act 2007
Income Tax Act 2007
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Income Tax Act 2007
Part O Memorandum accounts
Subpart OA—General provisions
Contents
Introductory provisions
OA 1 What this Part does
This Part provides some rules of general application for recording amounts as credits and debits to a memorandum account.
Defined in this Act: memorandum account
OA 2 Memorandum accounts
Types of account in this Part
(1)
The following accounts are dealt with in this Part:
(a)
an imputation credit account, see subparts OB and OP:
(b)
[Repealed](c)
[Repealed](d)
a branch equivalent tax account, see subpart OE:
(e)
an available subscribed capital (ASC) account, see subpart OF:
(f)
[Repealed](g)
a Maori authority credit account, see subpart OK.
Role of accounts
(2)
A memorandum account is an account listed in subsection (1) that provides a record of the credits and debits arising in the account.
Tax year
(3)
A memorandum account is maintained for a tax year and each subsequent tax year unless a provision in this Part expressly states otherwise.
Tables
(4)
The credits and debits that arise in a memorandum account are listed in tables in each of the subparts. The tables—
(a)
state the credits and the debits; and
(b)
provide the credit dates and the debit dates; and
(c)
refer to the section that fully defines the credits and debits, and their credit dates and debit dates.
Determination
(5)
The Commissioner may issue a determination under section 104B of the Tax Administration Act 1994 adjusting the amount of a credit or debit, or a credit date or debit date recorded in a memorandum account if the Commissioner considers the amount or date is not correct. The determination may be reviewed in challenge proceedings under Part 8A of that Act.
Defined in this Act: ASC account, branch equivalent tax account, Commissioner, CTR account, imputation credit account, Maori authority credit account, memorandum account, tax year
Compare: 2004 No 35 ss ME 1(1), ME 3(1), ME 10(1), (1A)–(1C), ME 15, ME 17(1), ME 20, ME 21(1), ME 22(1), ME 25, ME 26(2), ME 40, MF 1(1), MF 3(1), MF 6, MF 7(1), MF 11(1), MF 12(1), MG 2(1), MG 3(1), MG 12, MG 13(1), MG 14(1), MG 15(1), MI 2(1), (4), MI 3(1), MI 14, MI 17(1), MI 18(1), MJ 1(1), MJ 3(1), MJ 8, MK 1(1), MK 3(1), MK 9
Section OA 2(1)(b): repealed, on 1 April 2017, by section 176(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 2(1)(c): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 81(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 2(1)(d): amended, on 1 July 2012 (applying for income years beginning on or after that date), by section 81(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 2(1)(f): repealed, on 1 July 2010, by section 372(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 2(3): amended, on 29 March 2018 (with effect on 1 April 2008), by section 167 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 2 list of defined terms FDP account: repealed, on 1 April 2017, by section 176(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 2 list of defined terms policyholder credit account: repealed, on 1 April 2017, by section 176(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OA 3 General rules for maintaining memorandum accounts
What this section does
(1)
This section sets out the rules that apply in relation to a memorandum account to a person who—
(a)
is required to maintain a memorandum account; or
(b)
may choose to maintain an account.
Record
(2)
A person who maintains a memorandum account must record all credits and all debits that arise in the account as at their credit date or debit date. The credits and debits are listed in provisions in the relevant subpart for each type of memorandum account.
Credit balances
(3)
The credit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of credits over debits.
Debit balances
(4)
The debit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of debits over credits.
Defined in this Act: amount, income year, memorandum account, tax year
Compare: 2004 No 35 ss ME 2, ME 3(1), ME 16, ME 17(1), ME 22(1), ME 26, MF 2, MF 3(1), MF 8, MF 12(1), MG 1, MG 3(1), MG 14(1), MG 15(1), MI 1, MI 3(1), MI 17(1), MI 18(1), MJ 2, MJ 3(1), MK 2, MK 3(1)
OA 4 Certain credits and debits arising only in group accounts
Certain credits or debits of a consolidated group may arise only in the memorandum account of the consolidated group and not in the memorandum account of a group company. Memorandum accounts of consolidated groups are dealt with in subpart OP (Memorandum accounts of consolidated groups).
Defined in this Act: company, consolidated group, memorandum account
Compare: 2004 No 35 ss ME 13, ME 28(4), MF 9, MF 11(3), MG 16, MI 19
Credits and debits
OA 5 Credits
What this section does
(1)
This section defines the credits that arise under this Part in a memorandum account.
Imputation credits
(2)
A credit is an imputation credit if it is an amount—
(a)
set out in any of sections OA 7, OB 4 to OB 29, and OP 7 to OP 27:
(b)
described in a row of table O1: imputation credits or table O19: imputation credits of consolidated imputation groups.
(c)
[Repealed]FDP credits[Repealed]
(3)
[Repealed]CTR credits[Repealed]
(4)
[Repealed]Branch equivalent tax credits
(5)
A credit is a branch equivalent tax credit if it is an amount, for a BETA person,—
(a)
set out in section OA 7 or OE 19:
(b)
described in a row of table O9: person’s branch equivalent tax credits.
ASC credits
(6)
A credit is an ASC credit if it is an amount—
(a)
set out in section OA 7 or OF 4:
(b)
described in a row of table O11: ASC credits.
Policyholder credits[Repealed]
(7)
[Repealed]Maori authority credits
(8)
A credit is a Maori authority credit if it is an amount—
(a)
set out in any of sections OA 7 and OK 2 to OK 9:
(b)
described in a row of table O17: Maori authority credits.
Defined in this Act: amount, ASC credit, BETA person, branch equivalent tax credit, consolidated group, consolidated imputation group, imputation credit, Maori authority credit, memorandum account
Section OA 5(2)(b): amended, on 30 March 2017, by section 177(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 5(2)(c): repealed, on 30 March 2017, by section 177(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 5(3) heading: repealed, on 1 April 2017, pursuant to section 177(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 5(3): repealed, on 1 April 2017, by section 177(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 5(4) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 82(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 5(4): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 82(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 5(5): replaced, on 1 July 2012 (applying for income years beginning on or after that date), by section 82(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 5(7) heading: repealed, on 1 July 2010, pursuant to section 373(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 5(7): repealed, on 1 July 2010, by section 373(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 5 list of defined terms BETA company: repealed, on 1 July 2012, by section 82(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 5 list of defined terms consolidated BETA group: repealed, on 1 July 2012, by section 82(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 5 list of defined terms consolidated FDP group: repealed, on 1 April 2017, by section 177(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 5 list of defined terms CTR credit: repealed (with effect on 1 July 2011), on 7 May 2012, by section 82(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 5 list of defined terms FDP credit: repealed, on 1 April 2017, by section 177(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 5 list of defined terms PCA company: repealed, on 30 March 2017, by section 177(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 5 list of defined terms PCA person: repealed, on 30 March 2017, by section 177(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 5 list of defined terms policyholder credit: repealed, on 1 July 2010, by section 373(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OA 6 Debits
What this section does
(1)
An ICA company has an imputation credit for an amount representing an entitlement to funds held in a tax pooling account if the intermediary transfers the entitlement from another person to the company.
Imputation debits
(2)
A debit is an imputation debit if it is an amount—
(a)
set out in any of sections OA 7, OB 30 to OB 59, OP 28 to OP 50, and OZ 3:
(b)
described in a row of table O2: imputation debits or table O20: imputation debits of consolidated imputation groups.
FDP debits[Repealed]
(3)
[Repealed]CTR debits[Repealed]
(4)
[Repealed]Branch equivalent tax debits
(5)
A debit is a branch equivalent tax debit if it is an amount, for a BETA person,—
(a)
set out in any of sections OA 7 and OE 20 to OE 22:
(b)
described in a row of table O10: person’s branch equivalent tax debits.
ASC debits
(6)
A debit is an ASC debit if it is an amount—
(a)
set out in section OA 7 or OF 5:
(b)
described in a row of table O12: ASC debits.
Policyholder debits[Repealed]
(7)
[Repealed]Maori authority debits
(8)
A debit is a Maori authority debit if it is an amount—
(a)
set out in any of sections OA 7 and OK 10 to OK 18:
(b)
described in a row of table O18: Maori authority debits.
Defined in this Act: amount, ASC debit, BETA person, branch equivalent tax debit, consolidated group, consolidated imputation group, imputation debit, Maori authority debit, memorandum account
Section OA 6(3) heading: repealed, on 1 April 2017, pursuant to section 178(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 6(3): repealed, on 1 April 2017, by section 178(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 6(4) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 83(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 6(4): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 83(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 6(5): replaced, on 1 July 2012 (applying for income years beginning on or after that date), by section 83(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 6(7) heading: repealed, on 1 July 2010, pursuant to section 374(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 6(7): repealed, on 1 July 2010, by section 374(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 6 list of defined terms BETA company: repealed, on 1 July 2012, by section 83(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 6 list of defined terms consolidated BETA group: repealed, on 1 July 2012, by section 83(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 6 list of defined terms consolidated FDP group: repealed, on 1 April 2017, by section 178(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 6 list of defined terms CTR debit: repealed (with effect on 1 July 2011), on 7 May 2012, by section 83(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 6 list of defined terms FDP debit: repealed, on 1 April 2017, by section 178(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 6 list of defined terms PCA company: repealed, on 30 March 2017, by section 178(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 6 list of defined terms PCA person: repealed, on 30 March 2017, by section 178(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 6 list of defined terms policyholder debit: repealed, on 1 July 2010, by section 374(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Opening balances
OA 7 Opening balances of memorandum accounts
Balances carried forward
(1)
The opening balance of a memorandum account at the start of a tax year or income year, as applicable, is the closing balance of the account in the previous tax year or income year, as applicable.
Credits and debits forming opening balances
(2)
The amount of each credit or debit that forms part of the opening balance of a memorandum account is treated as recorded in the relevant memorandum account on the date on which it was originally recorded.
First year
(3)
If a consolidated group, company, or person starts a memorandum account during a tax year, the treatment of existing credits and debits is set out as follows:
(a)
when the companies of 2 or more consolidated imputation groups choose to combine to form, or to join, an imputation group, see section OP 3(2) (Changes in consolidated imputation groups):
(b)
when the companies that are part of an imputation group choose to convert their status to that of a consolidated group that is a consolidated imputation group, see section OP 3(3):
(c)
for a resident imputation subgroup associated with a trans-Tasman imputation group, see section OP 4 (Resident imputation subgroups).
Defined in this Act: amount, company, consolidated group, consolidated imputation group, imputation group, income year, memorandum account, resident imputation subgroup, tax year, trans-Tasman imputation group
Compare: 2004 No 35 ss ME 3(2), ME 10(1A)–(1C), (2), ME 17(2), ME 22(2), ME 26(1), MF 3(2), MF 8(1), MF 12(2), MG 3(2), MG 13(3), MI 3(2), MI 15, MJ 3(2), MK 3(2)
Section OA 7(2) heading: replaced, on 29 March 2018 (with effect on 1 April 2008), by section 168(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7(2): replaced, on 29 March 2018 (with effect on 1 April 2008), by section 168(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7(3): replaced, on 29 March 2018 (with effect on 1 April 2008), by section 168(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms amount: inserted, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms ASC account: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms BETA company: repealed, on 1 July 2012, by section 84(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 7 list of defined terms BETA person: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms branch equivalent tax account: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 84(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 7 list of defined terms FDP account: repealed, on 1 April 2017, by section 179(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 7 list of defined terms imputation credit account: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms Maori authority credit account: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 168(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OA 7 list of defined terms PCA company: repealed, on 30 March 2017, by section 179(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 7 list of defined terms PCA person: repealed, on 30 March 2017, by section 179(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 7 list of defined terms policyholder credit account: repealed, on 1 July 2010, by section 375(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Shareholder continuity requirements
OA 8 Shareholder continuity requirements for memorandum accounts
When this section applies
(1)
This section applies when a company or a consolidated group maintains a memorandum account.
Shareholder continuity requirement
(2)
An amount that is a credit in the account may be carried forward from a credit date to a later time only if the company or consolidated group that has the credit maintains a 66% continuity of shareholding under subsection (7) from the credit date to the later time. Subsections (3B) to (5) override this subsection.
Continuity
(3)
A credit is treated as continuing to exist to the extent to which it is not reduced by an earlier or later debit arising in the account.
Exclusions: qualifying companies
(3B)
Subsection (2) does not apply to a qualifying company. But, if section HA 11(1) (When requirements no longer met) applies to the company,—
(a)
an adjustment must be made under section HA 18 (Treatment of dividends when qualifying company status ends) to the company’s imputation credit account; and
(b)
the shareholder continuity requirements apply to the company from the day on which the status as a qualifying company ends.
Exclusion: ASC accounts
(4)
Subsection (2) does not apply to a person who maintains an ASC account.
Modification: CTR accounts[Repealed]
(5)
[Repealed]When continuity lost
(6)
For a memorandum account and for a company or consolidated group that maintains the account when the continuity of shareholding required by subsection (7) is lost, a debit arises under the relevant section in each subpart only to the extent to which an unused amount of credit remains in the memorandum account. The relevant sections are—
(a)
section OB 41 (ICA debit for loss of shareholder continuity):
(b)
[Repealed](c)
[Repealed](d)
section OK 15 (MACA debit for loss of shareholder continuity):
(e)
section OP 42 (Consolidated ICA debit for loss of shareholder continuity).
(f)
[Repealed](g)
[Repealed]Shareholder continuity requirement
(7)
The shareholder continuity requirement is that, while some or all of the credit still exists, a group of persons must continue to hold—
(a)
aggregate minimum voting interests in a company or consolidated group of at least 66%; and
(b)
if a market value circumstance exists for a company or, in the case of a consolidated group, a group company, aggregate minimum market value interests in the company or group of at least 66%.
Modifications
(8)
The following rules apply for the purposes of subsection (7):
(a)
the minimum interest referred to in subsection (7)(a) or (b) of a person must be counted if their interests change after the credit arises; and
(b)
a credit retains its separate character and is not treated as part of a credit referred to in section OA 7 in a later tax year; and
(c)
the amount by which a credit is reduced by an earlier or later debit is found by—
(i)
treating debits as reducing credits in the order in which credits arise; and
(ii)
counting an amount of a debit only once in the reduction of some or all of a credit; and
(iii)
applying any relevant terminating modifications set out in section OZ 4 (Terminating modifications to debits for loss of shareholder continuity) for a credit arising before 1 April 1992.
Defined in this Act: amount, ASC account, branch equivalent tax account, company, consolidated group, group of persons, imputation credit account, Maori authority credit account, market value circumstance, market value interest, memorandum account, minimum market value interest, minimum voting interest, shareholder, tax year, voting interest
Compare: 2004 No 35 ss ME 5(3), ME 12(1)(h), ME 13(2), (4), MF 4(5), MF 8(4), MG 15(1), MI 5(3)–(7), MI 18(1)(e), (3), (4), MK 5(3), (4)
Section OA 8(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 376(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 8(3B) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 376(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 8(3B): inserted (with effect on 1 April 2008), on 6 October 2009, by section 376(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 8(3B)(a): amended, on 1 April 2017, by section 180(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 8(4) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 376(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 8(4): substituted (with effect on 1 April 2008), on 6 October 2009, by section 376(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 8(5) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 85(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 8(5): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 85(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 8(6)(b): repealed, on 1 April 2017, by section 180(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 8(6)(c): repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 85(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 8(6)(f): repealed, on 1 April 2017, by section 180(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 8(6)(g): repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 85(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 8 list of defined terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 85(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 8 list of defined terms FDP account: repealed, on 1 April 2017, by section 180(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 8 list of defined terms policyholder credit account: repealed (with effect on 1 April 2008), on 6 October 2009, by section 376(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Treatment of credits and debits on resident’s restricted amalgamation
General provision
OA 9 General treatment of credits and debits on resident’s restricted amalgamation
When this section applies
(1)
This section applies—
(a)
on a resident’s restricted amalgamation, in relation to an amalgamated company and a memorandum account, if an amalgamating company ends its existence on the amalgamation and, at the time of the amalgamation, the amalgamating company maintains 1 or more memorandum accounts of the type referred to in sections OA 2(1)(a) to (d), and (f); and
(b)
for the purposes of determining whether a credit or debit arises in the same type of account of the amalgamated company.
Treatment of pre-amalgamation credits and debits
(2)
A credit or debit recorded in the memorandum account of the amalgamating company before the date of the amalgamation is treated as if it were recorded in the same type of account of the amalgamated company on the date it was recorded in the amalgamating company’s account with effect from the time of the amalgamation.
Treatment of pre-amalgamation period
(3)
For the purposes of section OA 8(7) and (8), in determining at a time after the amalgamation whether continuity of shareholding exists for the credit or debit in the memorandum account, the amalgamated company is treated for all times before the amalgamation as if—
(a)
it did not separately exist; and
(b)
it were instead the amalgamating company, with the same shareholders and option holders.
Avoidance provisions
(4)
For the purposes of determining the credits and debits in the memorandum account of an amalgamating company, sections GB 34 and GB 41 (which relate to arrangements to defeat the application of certain provisions) apply, modified as necessary.
Defined in this Act: amalgamated company, amalgamating company, consolidated group, memorandum account, resident’s restricted amalgamation, shareholder
Compare: 2004 No 35 ss ME 29(1)(a), MF 16(1)(a), MG 17(1)(a), MI 13
Section OA 9(3): amended (with effect on 1 April 2008), on 30 March 2022, by section 136 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OA 9(4): amended, on 1 July 2012 (applying for income years beginning on or after that date), by section 86(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
When companies amalgamate
OA 10 When credits or debits due to amalgamating company but not recorded
When this section applies
(1)
This section applies on a resident’s restricted amalgamation if, at the time of the amalgamation, an amalgamating company maintains—
(a)
an imputation credit account.
(b)
[Repealed](c)
[Repealed](d)
[Repealed](e)
[Repealed]Credits and debits due
(2)
A credit or a debit due to the amalgamating company but not recorded in its memorandum account before the date of amalgamation is recorded in the same type of memorandum account of the amalgamated company. Subsections (3) and (4) override this subsection.
Exclusion: shareholder continuity rules
(3)
Subsection (2) does not apply to a debit for loss of shareholder continuity in an imputation credit account arising under section OB 41 (ICA debit for loss of shareholder continuity) and described in table O2: imputation debits, row 14 (debit for loss of shareholder continuity).
Recording in imputation credit account
(4)
The credit or debit is recorded in the imputation credit account of the amalgamated company.
Defined in this Act: amalgamated company, amalgamating company, imputation credit, imputation credit account, imputation debit, memorandum account, resident’s restricted amalgamation
Compare: 2004 No 35 ss ME 29(1), MF 16(1), MG 17(1), MI 13
Section OA 10(1)(b): repealed, on 1 April 2017, by section 181(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 10(1)(c): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 87(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 10(1)(d): repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 87(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 10(1)(e): repealed, on 30 March 2017, by section 181(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 10(3): replaced, on 1 July 2012 (applying for income years beginning on or after that date), by section 87(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 10(4): replaced, on 1 April 2017, by section 181(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 10 list of defined terms branch equivalent tax account: repealed, on 1 July 2012, by section 87(7) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 10 list of defined terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 87(6) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 10 list of defined terms FDP account: repealed, on 1 April 2017, by section 181(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 10 list of defined terms policyholder credit account: repealed, on 30 March 2017, by section 181(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OA 11 FDP account on resident’s restricted amalgamation
[Repealed]Section OA 11: repealed, on 1 April 2017, by section 182 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OA 12 CTR account on resident’s restricted amalgamation
[Repealed]Section OA 12: repealed (with effect on 30 June 2009), on 6 October 2009, by section 377(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OA 13 Policyholder credit account on resident’s restricted amalgamation
[Repealed]Section OA 13: repealed, on 30 March 2017, by section 183 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Amalgamation of companies in consolidated groups
OA 14 Continuity of shareholding when group companies amalgamate
What this section does
(1)
This section and section OA 15 apply when all the companies in a consolidated group or consolidated imputation group amalgamate on a resident’s restricted amalgamation, and the amalgamation results in—
(a)
the end of the group’s existence; and
(b)
the formation of an amalgamated company.
Other company
(2)
The amalgamation may include a company that is not part of the consolidated group or consolidated imputation group.
Continuity of shareholding: credits and debits
(3)
Subsections (4) and (5) apply for the purposes of determining whether a credit or debit arises in the memorandum account of the amalgamated company that is of the type referred to in section OA 2(1)(a), (b), (d), and (f).
Treatment of pre-amalgamation credits and debits
(4)
A credit or debit recorded in the memorandum account of the consolidated group before the date of the amalgamation is treated as if it were recorded in the same type of account of the amalgamated company on the date it was recorded in the consolidated group’s account with effect from the date of amalgamation.
Treatment of pre-amalgamation period
(5)
For the purposes of section OA 8(7)(b) and (8), in determining at a time after the amalgamation whether continuity of shareholding exists for the credit or debit in the memorandum account, the amalgamated company is treated for all times before the amalgamation as if—
(a)
it did not separately exist; and
(b)
it were instead the consolidated group, with the same shareholders and option holders.
Avoidance provisions
(6)
For the purposes of determining the credits and debits in the memorandum account of a consolidated group, sections GB 34 and GB 41 (which relate to arrangements to defeat the application of certain provisions) apply, modified as necessary.
Defined in this Act: amalgamated company, company, consolidated group, consolidated imputation group, memorandum account, resident’s restricted amalgamation, shareholder, voting interest
Compare: 2004 No 35 ss ME 29(2)(a), MF 16(2)(a), MG 17(2)(a)
Section OA 14(1): amended, on 1 April 2017, by section 184(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 14(6): amended, on 1 July 2012 (applying for income years beginning on or after that date), by section 88(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OA 15 When credits or debits due to consolidated group but not recorded
When this section applies
(1)
This section applies on a resident’s restricted amalgamation referred to in section OA 14 when, at the time of the amalgamation, a consolidated group maintains—
(a)
an imputation credit account.
(b)
[Repealed](c)
[Repealed](d)
[Repealed]Credits and debits due
(2)
A credit or a debit due to the consolidated group but not recorded in its account before the date of amalgamation is recorded in the same type of memorandum account of the amalgamated company. Subsections (3) and (4) override this subsection.
Exclusion: shareholder continuity rules
(3)
Subsection (2) does not apply to a debit for loss of shareholder continuity in an imputation credit account arising under section OP 42 (Consolidated ICA debit for loss of shareholder continuity) and described in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity).
Recording in imputation credit account
(4)
The credit or debit is recorded in the imputation credit account of the amalgamated company.
Defined in this Act: amalgamated company, consolidated group, imputation credit account, resident’s restricted amalgamation, shareholder, voting interest
Compare: 2004 No 35 ss ME 29(2)(b), MF 16(2)(b), MG 17(2)(b)
Section OA 15(1)(b): repealed, on 1 April 2017, by section 185(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 15(1)(c): repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 89(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 15(1)(d): repealed, on 30 March 2017, by section 185(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 15(3): replaced, on 1 July 2012 (applying for income years beginning on or after that date), by section 89(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 15(4): replaced, on 1 April 2017, by section 185(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 15 list of defined terms branch equivalent tax account: repealed, on 1 July 2012, by section 89(5) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 15 list of defined terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 89(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 15 list of defined terms FDP account: repealed, on 1 April 2017, by section 185(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 15 list of defined terms policyholder credit account: repealed, on 30 March 2017, by section 185(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OA 16 When FDP account ends on resident’s restricted amalgamation
[Repealed]Section OA 16: repealed, on 1 April 2017, by section 186 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OA 17 When policyholder credit account ends on resident’s restricted amalgamation
[Repealed]Section OA 17: repealed, on 30 March 2017, by section 187 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Maximum permitted ratios
OA 18 Calculation of maximum permitted ratios
When this section applies
(1)
This section applies in relation to an imputation credit and a Maori authority credit, for the purposes of the calculation of—
(a)
an imputation ratio; and
(b)
[Repealed](c)
[Repealed](d)
[Repealed](e)
[Repealed](f)
a Maori authority credit ratio.
Maximum permitted ratio
(2)
A dividend or distribution with a credit attached must not have a ratio for the amount of the credit to the amount of the dividend or distribution that is more than the maximum permitted ratio calculated using the formula—
tax rate ÷ (1 − tax rate).
Definition of item in formula
(3)
In the formula, tax rate is—
(a)
for subsection (1)(a) to (e), the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT and attributed fringe benefits) for the income year in which the dividend is paid:
(b)
for subsection (1)(f), the basic rate of income tax set out in schedule 1, part A, clause 7 for the income year in which the distribution is paid.
Relationship with sections OZ 8 and OZ 9
(4)
Sections OZ 8 and OZ 9 (which relate to the calculation of maximum permitted ratios in certain income years) may apply to modify this section.
Defined in this Act: amount, combined imputation and CTR ratio, dividend, imputation credit, income tax, income year, Maori authority credit ratio, maximum permitted ratio, pay, tax year
Compare: 2004 No 35 ss ME 8(1), MG 8(1), MG 10(1), MI 8(1), MK 7(1)
Section OA 18(1): amended, on 1 April 2017, by section 188(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 18(1)(b): repealed, on 1 April 2017, by section 188(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 18(1)(c): repealed, on 1 April 2017, by section 188(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 18(1)(d): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 90(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 18(1)(e): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 90(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 18(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 85(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OA 18(4) heading: added, on 1 April 2008, by section 492 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OA 18(4): added, on 1 April 2008, by section 492 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OA 18 list of defined terms basic rate: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OA 18 list of defined terms combined imputation and FDP ratio: repealed, on 1 April 2017, by section 188(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 18 list of defined terms CTR credit: repealed (with effect on 1 July 2011), on 7 May 2012, by section 90(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 18 list of defined terms FDP credit: repealed, on 1 April 2017, by section 188(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OA 18 list of defined terms pay: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Subpart OB—Imputation credit accounts (ICA)
Contents
Introductory provisions
OB 1 General rules for companies with imputation credit accounts
New Zealand resident
(1)
A company that is resident in New Zealand is a company (an ICA company) that must establish and maintain an imputation credit account for a tax year. Subsection (2) overrides this subsection.
Exclusions
(2)
A company that is resident in New Zealand is excluded from being an ICA company if it is—
(a)
a company that—
(i)
[Repealed](ii)
[Repealed](iii)
has a constitution that prohibits a distribution to a shareholder; or
(iv)
derives only exempt income other than income exempt under sections CW 9 and CW 10 (which relate to income from equity); or
(v)
under a double tax agreement, is treated as not being resident in New Zealand; or
(b)
a Maori authority; or
(c)
a local authority; or
(d)
a Crown Research Institute; or
(e)
a subsidiary of the Accident Compensation Corporation affected by section 266 of the Accident Compensation Act 2001, or section 334(1) of the Accident Insurance Act 1998; or
(f)
a multi-rate PIE.
Exception to subsection (2): Australian resident[Repealed]
(3)
[Repealed]Defined in this Act: company, Crown Research Institute, double tax agreement, exempt income, group investment fund, ICA company, imputation credit account, income, local authority, Maori authority, multi-rate PIE, New Zealand, resident in New Zealand, shareholder, tax, tax year, trustee
Compare: 2004 No 35 s ME 1
Section OB 1(1): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 27 February 2014, by section 119(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
Section OB 1(2)(a)(i): repealed (with effect on 1 April 2008), on 6 October 2009, by section 378(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1(2)(a)(ii): repealed, on 29 March 2018, by section 258 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OB 1(2)(a)(iv): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 2 November 2012, by section 128(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section OB 1(2)(a)(iv): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 91(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 1(2)(e): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section OB 1(2)(f): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 378(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1(3) heading: repealed (with effect on 1 April 2008), on 6 October 2009, pursuant to section 378(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1(3): repealed (with effect on 1 April 2008), on 6 October 2009, by section 378(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1 list of defined terms Australian ICA company: repealed (with effect on 1 April 2008), on 6 October 2009, by section 378(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1 list of defined terms multi-rate PIE: inserted, on 1 April 2010, by section 378(6)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1 list of defined terms portfolio tax rate entity: repealed, on 1 April 2010, by section 378(6)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1 list of defined terms resident in Australia: repealed (with effect on 1 April 2008), on 6 October 2009, by section 378(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 2 Australian companies with imputation credit accounts
Election to be Australian ICA company
(1)
A company that is resident in Australia may choose, by notifying the Commissioner, to be obliged to establish and maintain an imputation credit account.
Ineligibility
(2)
Despite meeting the residency requirements, a company is not eligible to make an election referred to in subsection (1) if—
(a)
the company—
(i)
is a company referred to in section OB 1(2)(a)(iii) or (iv), and (b) to (f); or
(ib)
is treated as not being resident in Australia under a double tax agreement between New Zealand and Australia; or
(ii)
is treated as resident in a country other than Australia under an agreement between Australia and the other country that would be a double tax agreement if negotiated between New Zealand and that other country; or
(b)
an earlier election has been revoked by the Commissioner under subsection (7)(b), and the company has not shown the Commissioner that it has taken adequate steps to prevent the grounds of revocation occurring again.
When electing company becomes Australian ICA company
(3)
A company making an election under subsection (1) must maintain an imputation credit account from the following date, as applicable:
(a)
the first day of the tax year in which the Commissioner is notified:
(b)
for the purposes of section OB 60,—
(i)
for a company that is formed or becomes eligible in the tax year, the first day of the tax year in which the Commissioner receives the notice and the Commissioner notifies the company of that date; or
(ii)
if subparagraph (i) does not apply, 30 days after the date on which the Commissioner receives the notice.
When New Zealand resident company becomes Australian ICA company
(3B)
If a company that is resident in New Zealand stops being a company that is required by section OB 1 to maintain an imputation credit account because, under a double tax agreement between New Zealand and Australia, the company is treated as not being resident in New Zealand, the company continues to be required to maintain an imputation credit account.
Joint and several liability
(4)
A company that is part of the same wholly-owned group of companies as an Australian ICA company may have joint and several liability with the Australian ICA company for further income tax, civil penalties, and interest under Part 7 of the Tax Administration Act 1994 imposed on the Australian ICA company for a breach by the Australian ICA company of the imputation rules.
Exclusion
(5)
Despite subsection (4), no joint and several liability arises if the Australian ICA company is prohibited by an independent regulatory body from being subject to the liability.
Dividend in Australian currency
(6)
An Australian ICA company that pays a dividend in Australian currency must make a currency conversion under section OB 60(6).
How status ends
(7)
A company ends its status as an Australian ICA company if—
(a)
the company ceases to be resident in Australia or meets a requirement of subsection (2)(a) or (b); or
(b)
for a company that has made an election under subsection (1),—
(i)
the company revokes the election by notifying the Commissioner; or
(ii)
the Commissioner gives the company notice revoking the election.
(c)
[Repealed]When status ends
(8)
For the purposes of subsection (7), the company ends its status as an Australian ICA company—
(a)
from the day on which the relevant circumstance of ineligibility in subsection (2) applies; or
(b)
for a company that has made an election under subsection (1), unless paragraph (a) or (c) applies, from the last day of the tax year in which the company or the Commissioner revokes the election; or
(c)
for the purposes of section OB 60,—
(i)
when the company notifies the Commissioner, on the date on which the Commissioner receives the notice; or
(ii)
on the date set out in the Commissioner’s notice.
Outstanding obligations
(9)
A company that stops being an Australian ICA company for a tax year must nevertheless satisfy all obligations that the company had as an Australian ICA company.
Defined in this Act: Australian ICA company, Commissioner, company, dividend, double tax agreement, imputation credit account, imputation rules, income, New Zealand, notice, notify, pay, resident in Australia, resident in New Zealand, tax year, wholly-owned group of companies
Compare: 2004 No 35 s ME 1A
Section OB 2 heading: replaced (with effect on 15 March 2017), on 31 March 2023, by section 91(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section OB 2(1) heading: replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 27 February 2014, by section 120(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
Section OB 2(1): replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 27 February 2014, by section 120(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
Section OB 2(2)(a)(i): amended, on 29 March 2018, by section 258 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OB 2(2)(a)(i): amended, on 1 April 2008, by section 493(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 2(2)(a)(ib): inserted (with effect on 15 March 2017), on 31 March 2023, by section 91(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section OB 2(2)(a)(ii): substituted, on 1 April 2008, by section 493(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 2(3) heading: replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 27 February 2014, by section 120(3) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
Section OB 2(3): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 27 February 2014, by section 120(4) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
Section OB 2(3B) heading: inserted (with effect on 15 March 2017), on 31 March 2023, by section 91(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section OB 2(3B): inserted (with effect on 15 March 2017), on 31 March 2023, by section 91(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section OB 2(7)(a): replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 27 February 2014, by section 120(5) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
Section OB 2(7)(b): replaced (with effect on 15 March 2017), on 31 March 2023, by section 91(4) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section OB 2(7)(c): repealed (with effect on 15 March 2017), on 31 March 2023, by section 91(4) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section OB 2(8)(b): amended (with effect on 15 March 2017), on 31 March 2023, by section 91(5) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section OB 2 list of defined terms resident in New Zealand: inserted (with effect on 15 March 2017), on 31 March 2023, by section 91(6) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section OB 2 list of defined terms resident in New Zealand: repealed (with effect on 1 April 2008), on 6 October 2009, by section 379(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 3 Imputation credit accounts
General rules
(1)
The general rules on memorandum accounts set out in sections OA 2 and OA 3 (which relate to the treatment of memorandum accounts) apply to an imputation credit account of an ICA company.
Consolidated imputation groups
(2)
Under section OP 2 (When credits and debits arise only in group accounts), certain credits and debits do not arise in an ICA company’s memorandum account if the company is part of a consolidated imputation group.
Defined in this Act: consolidated imputation group, ICA company, imputation credit account, memorandum account
Compare: 2004 No 35 s ME 13(1)
OB 3B General rule for life insurer’s policyholder base
An imputation credit does not arise in relation to a life insurer’s policyholder base. Similarly, an imputation debit does not arise in relation to a life insurer’s policyholder base.
Defined in this Act: imputation credit, imputation debit, life insurer, policyholder base
Section OB 3B: inserted, on 1 July 2010, by section 380(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Imputation credits
OB 4 ICA payment of tax or transfer to account
Credit
(1)
An ICA company has an imputation credit for an amount of income tax or provisional tax paid or an amount of excess tax transferred under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b) (Wholly-owned groups of companies). Subsection (3) overrides this subsection.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 2 (provisional tax or income tax paid), row 2B (transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b)), row 2C (transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b)), and row 2D (transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b)).
No credit
(3)
An ICA company does not have an imputation credit for an amount of—
(a)
a transfer from a tax pooling account to a tax account with the Commissioner; or
(b)
income tax paid on income derived when the company is not an ICA company; or
(c)
income tax paid by a life insurer to satisfy its schedular income tax liability for schedular policyholder base income; or
(d)
income tax paid under sections LA 2 and LE 1 (which relate to tax credits for imputation credits and their use) by crediting an imputation credit; or
(e)
[Repealed](eb)
[Repealed](f)
income tax paid by a tax credit under subpart LP (Tax credits for supplementary dividends); or
(fb)
income tax paid by crediting a research and development tax credit against income tax liability; or
(g)
further income tax applied under section OB 69 to pay income tax or provisional tax; or
(gb)
[Repealed](h)
[Repealed](i)
income tax paid as a trustee, unless paid on category A income of the type described in paragraph (c) of the definition of company in section YA 1 (Definitions).
Credit date
(4)
The credit date is—
(a)
for an amount of income tax or provisional tax paid other than an amount referred to in paragraph (c), the day the tax is paid:
(b)
[Repealed](c)
for an amount of excess tax transferred in a tax year (the transfer year) from another period or tax type of the ICA company on a date under section 173L of the Tax Administration Act 1994, or from another ICA company on a date under section 173M of that Act or section RC 32(5)(b),—
(i)
despite section 173L(2)(a) to (bb) of that Act, the date of the request for the transfer if that date is in the transfer year; or
(ii)
despite section 173L(2)(a) to (bb) of that Act, the date of the request for the transfer if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the ICA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the transfer year under section 173L or 173M of that Act or section RC 32(5)(b), and the ICA to which the transfer is made is in credit; or
(iii)
the date referred to in the opening words of this paragraph, if the requirements of neither subparagraph (i) nor subparagraph (ii) are met.
Limitation on credits
(5)
No amount may give rise to more than 1 imputation credit.
Defined in this Act: amount, category A income, Commissioner, company, further income tax, ICA company, imputation credit, imputation credit account, income, income tax, life insurer, notice, pay, provisional tax, research and development tax credit, schedular income tax liability, schedular policyholder base income, tax account with the Commissioner, tax credit, tax pooling account, tax year, trustee
Compare: 2004 No 35 s ME 4(1)(a), (1C), (2)(a)
Section OB 4 heading: replaced, on 30 March 2022, by section 137(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 4(1): replaced, on 30 March 2022, by section 137(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 4(2): amended, on 30 March 2022, by section 137(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 4(3)(c): substituted, on 1 July 2010, by section 381(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 4(3)(e): repealed, on 1 April 2017, by section 189(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 4(3)(eb): repealed (with effect on 1 April 2009), on 30 March 2017, by section 189(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 4(3)(fb): inserted, on 1 April 2019, by section 11(1) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section OB 4(3)(gb): repealed, on 1 April 2017, by section 189(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 4(3)(h): repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 92(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 4(4): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 112(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 4(4)(a): amended, on 30 March 2022, by section 137(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 4(4)(b): repealed, on 30 March 2022, by section 137(5) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 4(4)(c): inserted, on 30 March 2022, by section 137(5) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 4 list of defined terms branch equivalent tax account: repealed, on 1 July 2012, by section 92(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 4 list of defined terms FDP credit: repealed, on 1 April 2017, by section 189(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 4 list of defined terms notice: inserted, on 2 June 2016, by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section OB 4 list of defined terms policyholder base income tax liability: repealed, on 1 July 2010, by section 381(3)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 4 list of defined terms research and development tax credit: inserted, on 1 April 2019, by section 11(2) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section OB 4 list of defined terms schedular income tax liability: inserted, on 1 July 2010, by section 381(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 4 list of defined terms schedular policyholder base income: inserted, on 1 July 2010, by section 381(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 5 ICA deposit in tax pooling account
Credit
(1)
An ICA company has an imputation credit for an amount provided by it and paid by an intermediary into a tax pooling account.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 3 (deposit in tax pooling account).
Credit date
(3)
The credit date is the day the amount is deposited.
Defined in this Act: amount, ICA company, imputation credit, imputation credit account, intermediary, pay, tax pooling account
Compare: 2004 No 35 s ME 4(1)(ac), (2)(ac)
OB 6 ICA transfer from tax pooling account
Credit
(1)
An ICA company has an imputation credit for an amount representing an entitlement to funds held in a tax pooling account if the intermediary transfers the entitlement from another person to the company.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 4 (transfer from tax pooling account).
Credit date
(3)
The credit date is,—
(a)
for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the company’s tax account with the Commissioner, the credit date under section RP 19 (Transfers from tax pooling accounts) for the amount transferred; or
(ab)
for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the Commissioner to satisfy a liability of the company that is an increased amount of tax under section RP 17B (Tax pooling accounts and their use) other than income tax, the date of the transfer; or
(b)
for an entitlement to funds that are refunded by the intermediary from the tax pooling account to the company, the date of the refund; or
(c)
for an entitlement that is transferred by the intermediary from the company to another person, the date of the transfer.
Defined in this Act: amount, Commissioner, ICA company, imputation credit, intermediary, tax account with the Commissioner, tax pooling account
Compare: 2004 No 35 s ME 4(1)(ad), (2)(ad)
Section OB 6(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 95(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 6(3): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 95(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 6(3)(ab): inserted (with effect on 6 October 2009), on 30 March 2017, by section 190 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 7 ICA payment of further income tax
Credit
(1)
An ICA company has an imputation credit for an amount of further income tax paid under section OB 65 or OB 66.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 5 (payment of further income tax).
Credit date
(3)
The credit date is the day the further income tax is paid.
Defined in this Act: amount, further income tax, ICA company, imputation credit, pay
Compare: 2004 No 35 s ME 4(1)(c), (2)(a)
OB 7B ICA payment of qualifying company election tax
Credit
(1)
An ICA company has an imputation credit for an amount of qualifying company election tax paid under section HA 40 (Liability for qualifying company election tax).
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 5B (payment of qualifying company election tax).
Credit date
(3)
The credit date is the day the qualifying company election tax is paid.
Defined in this Act: amount, ICA company, imputation credit, pay, qualifying company election tax
Compare: 2004 No 35 s ME 4(1)(ae), (2)(ae)
Section OB 7B: inserted, on 1 April 2008, by section 495 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 7C ICA expenditure on research and development
[Repealed]Section OB 7C: repealed (with effect on 1 April 2009), on 30 March 2017, by section 191 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 8 ICA resident withholding tax withheld
Credit
(1)
An ICA company has an imputation credit for resident withholding tax (RWT) that is treated under section RA 9(1)(b) (Treatment of amounts withheld as received) as derived by the company other than as policyholder base income.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 6 (amount of tax withheld for resident passive income).
Credit date
(3)
The credit date is the day the amount of tax is withheld.
Defined in this Act: amount, amount of tax, ICA company, imputation credit, policyholder base income, resident passive income, RWT
Compare: 2004 No 35 s ME 4(1)(i), (2)(g)
Section OB 8(1): amended, on 1 July 2010, by section 382(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 8 list of defined terms policyholder base income: inserted, on 1 July 2010, by section 382(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 8 list of defined terms resident withholding tax: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
OB 9 ICA dividend derived with imputation credit
Credit
(1)
An ICA company has an imputation credit for the amount of an imputation credit attached to a dividend derived by the company.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 7 (dividend derived with imputation credit).
Credit date
(3)
The credit date is the day the dividend is paid to the company.
Defined in this Act: amount, dividend, ICA company, imputation credit, pay
Compare: 2004 No 35 s ME 4(1)(d), (2)(c)
OB 9B ICA attributed PIE income with imputation credit
Credit
(1)
An ICA company that is an investor in a multi-rate PIE has an imputation credit for the amount of an imputation credit attributed to it under section HM 54 (Use of tax credits other than foreign tax credits by investors).
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 7B (attributed PIE income with imputation credit).
Credit date
(3)
The credit date is the day the amount is attributed.
Defined in this Act: amount, attributed PIE income, ICA company, imputation credit, multi-rate PIE
Section OB 9B: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 384(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 9C ICA credit for research and development tax credit
Credit
(1)
An ICA company has an imputation credit for the amount of research and development tax credit it is entitled to.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 7C (Research and development tax credits).
Credit date
(3)
The credit date is the date the company files its return of income for the income year.
Defined in this Act: amount, ICA company, imputation credit, research and development tax credit
Section OB 9C: inserted, on 1 April 2019, by section 12 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
OB 10 ICA dividend derived with FDP credit
[Repealed]Section OB 10: repealed, on 1 April 2017, by section 192 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 11 ICA payment of FDP
[Repealed]Section OB 11: repealed (with effect on 30 June 2009), on 6 October 2009, by section 385(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 12 ICA transfer from FDP account
[Repealed]Section OB 12: repealed, on 1 April 2017, by section 193 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 13 ICA transfer of debit balance on leaving wholly-owned group
Election
(1)
If the requirements of subsections (2) and (3) are met, an ICA company may choose to transfer a debit balance in its imputation credit account when the company stops being part of a wholly-owned group of companies.
Eligibility
(2)
The company may make an election under subsection (1) if, at a particular time,—
(a)
the company is or has recently been part of a wholly-owned group of companies; and
(b)
the company is no longer part of the group, or will shortly no longer be part of the group; and
(c)
the company has a debit balance in its imputation credit account; and
(d)
the group has a loss balance carried forward from earlier tax years of more than $1,000,000 for the income year before the particular time.
Credit and debit
(3)
The company may choose that an amount of no more than the debit balance is—
(a)
an imputation credit in its imputation credit account; and
(b)
an imputation debit in the imputation credit account of another company in the group after the date on which the company stops being part of the wholly-owned group.
Table references
(4)
The imputation credit in subsection (3)(a) is referred to in table O1: imputation credits, row 11 (debit balance on leaving wholly-owned group). The imputation debit in subsection (3)(b) is referred to in table O2: imputation debits, row 17 (debit balance on leaving wholly-owned group).
Form and timing of election
(5)
The company must make the election—
(a)
in a form that the Commissioner may require; and
(b)
with a notice of agreement from the group company in whose account the imputation debit arises under subsection (3)(b); and
(c)
before the company stops being part of the wholly-owned group.
Further time
(6)
For the purposes of subsection (5)(b), the Commissioner may allow further time in which to provide the notice if the company did not have sufficient information at the time it stops being part of the wholly-owned group.
Credit date
(7)
The credit date is the day the company stops being part of the wholly-owned group.
Defined in this Act: amount, Commissioner, company, ICA company, imputation credit, imputation credit account, imputation debit, income year, notice, tax loss, wholly-owned group of companies
Compare: 2004 No 35 ss ME 4(1)(cb), (2)(bb), ME 9B(1), (2)
OB 14 ICA payment of tax on leaving wholly-owned group
Credit
(1)
An ICA company has an imputation credit for a payment of imputation additional tax that it chooses to pay under section OB 71, excluding an excess tax payment applied under section OB 71(8).
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 12 (payment of tax on leaving wholly-owned group).
Credit date
(3)
The credit date is the day the imputation additional tax is paid to the Commissioner.
Defined in this Act: amount, Commissioner, excess tax payment, ICA company, imputation additional tax, imputation credit, pay
Compare: 2004 No 35 s ME 4(1)(cc), (2)(bc)
OB 15 ICA payment of tax on joining wholly-owned group
Credit
(1)
An ICA company has an imputation credit for a payment of imputation additional tax for which it is liable under section OB 72, excluding an excess tax payment applied under section OB 72(9).
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 13 (payment of tax on joining wholly-owned group).
Credit date
(3)
The credit date is the day the imputation additional tax is paid to the Commissioner.
Defined in this Act: amount, Commissioner, excess tax payment, ICA company, imputation additional tax, imputation credit, pay
Compare: 2004 No 35 s ME 4(1)(cd), (2)(bd)
OB 16 ICA attribution for personal services
Credit
(1)
An ICA company that is not a qualifying company has an imputation credit for an amount equal to 38.89% of the personal services attribution under section GB 29 (Attribution rule: calculation).
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 14 (attribution for personal services).
Credit date
(3)
The credit date is the last day of the tax year for which the attribution is made.
Defined in this Act: amount, ICA company, imputation credit, imputation credit account, qualifying company, tax year
Compare: 2004 No 35 s ME 4(1)(ab), (2)(ab)
Section OB 16(1): amended, on 1 April 2011, by section 96 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 16(1): amended, on 1 April 2008, by section 496 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 17 ICA transfer from policyholder credit account
[Repealed]Section OB 17: repealed, on 1 July 2010, by section 386(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 18 ICA transfer from ASC account
Credit
(1)
An ICA company has an imputation credit for the transfer of an amount from its available subscribed capital (ASC) account. The amount is calculated under section OF 5(4) (ASCA transfer to imputation credit account).
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 16 (transfer from ASC account).
Credit date
(3)
The credit date is the day the amount is transferred.
Defined in this Act: amount, ASC account, ICA company, imputation credit, imputation credit account
Compare: 2004 No 35 s ME 4(1)(da), (2)(ca)
OB 19 ICA transfer to master fund
Credit
(1)
An ICA company that is a master fund has an imputation credit for the transfer of an amount of expenditure under sections DV 5 to DV 7 (which relate to the transfer of expenditure to master funds). The amount is calculated using the formula—
expenditure transferred × tax rate.
Definition of items in formula
(2)
In the formula,—
(a)
expenditure transferred is the amount of expenditure transferred under sections DV 5 to DV 7 (which relate to the expenditure of investment funds) to the company as a master fund:
(b)
tax rate is the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits).
Table reference
(3)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 17 (transfer to master fund).
Credit date
(4)
The credit date is the last day of the tax year corresponding to the income year in which the expenditure is deducted.
Defined in this Act: amount, ICA company, imputation credit, imputation credit account, income tax, master fund
Compare: 2004 No 35 s ME 4(1)(aab), (2)(aab)
Section OB 19(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 387(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 19(2)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 19 list of defined terms basic rate: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
OB 19B ICA transfer to loss-using group company
Credit
(1)
An ICA company that uses a tax loss made available under section IC 5 (Company B using company A’s tax loss) by another company has an imputation credit for the amount of an imputation credit transferred to it by an ICA company under an election under section OB 83 relating to the tax loss.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 17B (transfer of credit to loss-using group company).
Credit date
(3)
The credit date is the day on which the credit is transferred.
Defined in this Act: company, ICA company, imputation credit, tax loss
Section OB 19B: inserted (with effect on 1 October 2016 and applying for the 2017–18 and later income years), on 30 March 2017, by section 194(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 20 ICA distribution with Maori authority credit
Credit
(1)
An ICA company has an imputation credit for the amount of a Maori authority credit attached to a distribution received by the company.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 18 (distribution with Maori authority credit).
Credit date
(3)
The credit date is the day the distribution is paid.
Defined in this Act: amount, ICA company, imputation credit, Maori authority credit, pay
Compare: 2004 No 35 s ME 4(1)(ea), (2)(cb)
OB 21 ICA balance of Maori authority credit account
Credit
(1)
An ICA company has an imputation credit for an amount equal to the amount of a Maori authority debit under section OK 18 (MACA final balance) when the Maori authority stops being a Maori authority.
Table references
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 19 (balance of Maori authority credit account). The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 10 (final balance).
Credit date
(3)
The credit date is the same as the debit date recorded for the debit under section OK 18.
Defined in this Act: amount, ICA company, imputation credit, Maori authority, Maori authority debit
Compare: 2004 No 35 s ME 4(1)(k), (2)(k)
OB 22 ICA replacement payment to company under share-lending arrangement
Credit
(1)
An ICA company has an imputation credit for the amount of an imputation credit attached under section OB 64, or treated as attached under section RE 25 (When amount of tax treated as imputation credit) to a replacement payment paid under a share-lending arrangement to the company.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 20 (replacement payment under share-lending arrangement).
Credit date
(3)
The credit date is the day the replacement payment is paid.
Defined in this Act: amount, ICA company, imputation credit, pay, replacement payment, share-lending arrangement
Compare: 2004 No 35 s ME 4(1)(eb), (ec), (2)(cc)
OB 23 ICA credit transfer to company
Credit
(1)
An ICA company has an imputation credit for the amount of an imputation credit shown in a credit transfer notice given to the company.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 21 (credit in credit transfer notice).
Credit date
(3)
The credit date is the day the notice is given.
Defined in this Act: amount, credit transfer notice, ICA company, imputation credit
Compare: 2004 No 35 s ME 4(1)(ed), (2)(cd)
OB 23B ICA transfer from consolidated imputation group to departing member for unused tax payment
Credit
(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.
Table reference
(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).
When credit arises
(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.
Defined in this Act: amount, Commissioner, company, consolidated imputation group, ICA company, imputation credit, imputation credit account, imputation debit, income tax, pay, provisional tax, tax pooling intermediary
Section OB 23B: inserted (with effect on 1 April 2021), on 31 March 2023, 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).
OB 24 ICA credit on resident’s restricted amalgamation
Credit
(1)
An ICA company has an imputation credit for the amount of a credit that arises on or after a resident’s restricted amalgamation in the imputation credit account of the amalgamated company under 1 of the sections listed in subsection (3).
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 22 (credit on resident’s restricted amalgamation).
Sections
(3)
The sections are—
(a)
section OA 10 (When credits or debits due to amalgamating company but not recorded) for imputation credits in the imputation credit account of an amalgamating company:
(b)
[Repealed](c)
[Repealed](d)
[Repealed](e)
section OA 14 (Continuity of shareholding when group companies amalgamate) for imputation credits in the imputation credit account of a consolidated imputation group that ends its existence on the amalgamation.
(f)
[Repealed](g)
[Repealed]Defined in this Act: amalgamated company, amalgamating company, amount, consolidated group, consolidated imputation group, ICA company, imputation credit, imputation credit account, resident’s restricted amalgamation
Compare: 2004 No 35 ss ME 29, MG 17, MI 13
Section OB 24(3)(b): repealed, on 1 April 2017, by section 195(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 24(3)(c): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 93(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 24(3)(d): repealed, on 30 March 2017, by section 195(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 24(3)(f): repealed, on 1 April 2017, by section 195(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 24(3)(g): repealed, on 30 March 2017, by section 195(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 24 list of defined terms consolidated FDP group: repealed, on 1 April 2017, by section 195(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 24 list of defined terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 93(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 24 list of defined terms CTR credit: repealed (with effect on 1 July 2011), on 7 May 2012, by section 93(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 24 list of defined terms FDP account: repealed, on 1 April 2017, by section 195(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 24 list of defined terms FDP credit: repealed, on 1 April 2017, by section 195(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 24 list of defined terms policyholder credit: repealed, on 30 March 2017, by section 195(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 24 list of defined terms policyholder credit account: repealed, on 30 March 2017, by section 195(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 25 ICA reversal of tax advantage arrangement
When this section applies
(1)
This section applies when it is established that an imputation credit in an ICA company’s imputation credit account was incorrectly determined to be the subject of an arrangement to obtain a tax advantage.
Credit
(2)
The company has an imputation credit for an amount equal to the amount of a debit in the company’s imputation credit account under section OB 54.
Table references
(3)
The imputation credit in subsection (2) is referred to in table O1: imputation credits, row 23 (reversal of tax advantage arrangement). The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 27 (tax advantage arrangement).
Credit date
(4)
The credit date is the same as the debit date of the debit under section OB 54.
Defined in this Act: amount, arrangement, ICA company, imputation credit, imputation credit account, imputation debit, tax advantage
Compare: 2004 No 35 s ME 4(1)(h), (2)(f)
OB 26 ICA elimination of double debit
When this section applies
(1)
This section applies when an imputation debit in an ICA company’s imputation credit account under section OB 41 has the effect of cancelling an imputation credit under section OB 5.
Credit
(2)
The company has an imputation credit for an amount equal to the amount of the debit referred to in subsection (1), and—
(a)
another debit arises under section OB 34 for a refund of the amount of the deposit on a debit date after the debit date for the debit for loss of shareholder continuity; or
(ab)
another debit arises under section OB 35 for a transfer to another person of the entitlement to the amount of the deposit on a debit date after the debit date for the debit for the loss of shareholder continuity; or
(b)
the deposit is taken into account under section RP 19 (Transfers from tax pooling accounts) in determining the balance of the company’s tax account with the Commissioner after the debit date for the debit for loss of shareholder continuity.
Table references
(3)
The table references are as follows:
(a)
the imputation debit in subsection (1) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity):
(b)
the imputation credit in subsection (1) is referred to in table O1: imputation credits, row 3 (deposit in tax pooling account):
(c)
the imputation credit in subsection (2) is referred to in table O1: imputation credits, row 24 (elimination of double debit):
(d)
the imputation debit in subsection (2)(a) is referred to in table O2: imputation debits, row 6 (refund from tax pooling account):
(e)
the imputation debit in subsection (2)(ab) is referred to in table O2: imputation debits, row 7 (transfer of entitlement to another person in tax pooling account).
Credit date
(4)
The credit date is the day—
(a)
the deposit is refunded; or
(ab)
the entitlement is transferred; or
(b)
the credit arises in the company’s tax account with the Commissioner.
Defined in this Act: amount, Commissioner, ICA company, imputation credit, imputation credit account, imputation debit, shareholder, tax account with the Commissioner
Compare: 2004 No 35 s ME 4(1A), (2A)
Section OB 26(2): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 196(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 26(2)(ab): inserted (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 196(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 26(3)(e): inserted (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 196(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 26(4)(ab): inserted (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 196(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 27 ICA non-resident withholding tax withheld
Credit
(1)
An Australian ICA company has an imputation credit for an amount of tax withheld by the payer of non-resident passive income.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 25 (NRWT withheld).
Credit date
(3)
The credit date is the day the amount of tax is withheld.
Defined in this Act: amount, amount of tax, Australian ICA company, imputation credit, non-resident passive income, NRWT
Compare: 2004 No 35 s ME 4(1B)(a), (2B)(a)
Section OB 27 list of defined terms non-resident withholding tax: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
OB 28 ICA payment of amount of tax for schedular payment
Credit
(1)
An Australian ICA company has an imputation credit for an amount equal to the amount of tax for a schedular payment paid to the company as a non-resident contractor.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 26 (amount of tax for schedular payment).
Credit date
(3)
The credit date is the day the amount of tax is withheld.
Defined in this Act: amount, amount of tax, Australian ICA company, imputation credit, non-resident contractor, pay, schedular payment
Compare: 2004 No 35 s ME 4(1B)(b), (2B)(b)
OB 29 ICA payment of schedular income tax
Credit
(1)
An Australian ICA company has an imputation credit for a payment of income tax relating to the company’s schedular income tax liability for income derived under section CR 3 (Income of non-resident general insurer) or CV 16 (Non-resident shippers).
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 27 (payment of schedular income tax).
Credit date
(3)
The credit date is the day the schedular income tax is paid.
Defined in this Act: Australian ICA company, company, imputation credit, income, pay, schedular income
Compare: 2004 No 35 s ME 4(1B)(c), (2B)(c)
Section OB 29(1): amended, on 2 November 2012, by section 130 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Imputation debits
OB 30 ICA payment of dividend
Debit
(1)
An ICA company has an imputation debit for the amount of an imputation credit attached to a dividend paid by the company.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 2 (payment of dividend).
Debit date
(3)
The debit date is the day the dividend is paid.
Arrangement for dividend from another company
(4)
Section GB 37 (Arrangements for payment of dividend by other companies) may apply to treat an amount as a debit under this section.
Defined in this Act: amount, dividend, ICA company, imputation credit, imputation debit, pay
Compare: 2004 No 35 s ME 5(1)(a), (2)(a)
OB 31 ICA allocation of provisional tax
Debit
(1)
An ICA company has an imputation debit for an amount of provisional tax allocated by the company under section RC 32 (Wholly-owned groups of companies) to an underpaid company.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 3 (allocation of provisional tax).
Debit date
(3)
The debit date is the day the Commissioner is notified of the allocation.
Defined in this Act: amount, Commissioner, company, ICA company, imputation debit, notify, provisional tax
Compare: 2004 No 35 s ME 5(1)(d), (2)(d)
OB 32 ICA refund of tax or transfer from account
Debit
(1)
An ICA company has an imputation debit for the amount of a refund of income tax paid to the company or the amount of a transfer of excess income tax or excess provisional tax under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b) (Wholly-owned groups of companies). Subsection (2) overrides this subsection.
No debit
(2)
A debit under subsection (1) does not include—
(a)
a refund of income tax paid for a period when the company was not an ICA company; or
(ab)
a refund of income tax paid by a life insurer to satisfy its schedular income tax liability for schedular policyholder base income; or
(b)
a refund of income tax paid before a debit arises under section OB 41, but only to the extent to which the amount of the refund is less than or equal to the amount of the debit; or
(c)
a refund under subpart LP (Tax credits for supplementary dividends) because the supplementary dividend generating the refund was paid before a debit arises under section OB 41, but only to the extent to which the amount of the refund is less than the amount of the debit.
Table references
(3)
The table references are as follows:
(a)
the imputation debit in subsection (1) is referred to in table O2: imputation debits, row 4 (refund of income tax), row 4B (transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b)), row 4C (transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b)), or row 4D (transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b)):
(b)
the imputation debit in subsection (2)(b) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity):
(c)
the imputation debit in subsection (2)(c) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity).
Part-year ICA company
(4)
The amount of the debit that arises from a refund of income tax if the company is an ICA company for only part of a tax year is an amount calculated using the formula—
(ICA days ÷ 365) × refund.
Definition of items in formula
(5)
In the formula,—
(a)
ICA days is the number of days in which the company is an ICA company:
(b)
refund is the amount of the refund.
Debit date
(6)
The debit date for—
(a)
a refund of income tax is the day the refund is made; or
(b)
an amount of excess tax transferred in a tax year (the transfer year) to another period or tax type of the ICA company on a date under section 173L of the Tax Administration Act 1994, or to another ICA company on a date under section 173M of that Act or section RC 32(5)(b), is—
(i)
despite section 173L(2)(a) to (bb) of the Tax Administration Act 1994, the date of the request for the transfer if that date is in the transfer year; or
(ii)
despite section 173L(2)(a) to (bb) of the Tax Administration Act 1994, the date of the request for the transfer if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the ICA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the transfer year under section 173L or 173M of that Act, and the ICA to which the transfer is made is in credit; or
(iii)
the date referred to in the opening words of this paragraph, if the requirements of neither subparagraph (i) nor subparagraph (ii) are met.
Relationship with section OB 37
(7)
This section does not apply to an amount that gives rise to a debit under section OB 37.
Defined in this Act: amount, company, ICA company, imputation debit, income tax, life insurer, pay, schedular income tax liability, schedular policyholder base income, shareholder, supplementary dividend, tax year
Compare: 2004 No 35 s ME 5(1)(e), (2)(e)
Section OB 32 heading: replaced, on 30 March 2022, by section 138(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 32(1): amended, on 30 March 2022, by section 138(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 32(2)(ab): inserted, on 1 July 2010, by section 388(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 32(2)(b): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 97(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 32(3)(a): amended, on 30 March 2022, by section 138(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 32(4): amended, on 30 March 2022, by section 138(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 32(6): replaced, on 30 March 2022, by section 138(5) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OB 32(7) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 388(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 32(7): added (with effect on 1 April 2008), on 6 October 2009, by section 388(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 32 list of defined terms life insurer: inserted, on 1 July 2010, by section 388(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 32 list of defined terms schedular income tax liability: inserted, on 1 July 2010, by section 388(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 32 list of defined terms schedular policyholder base income: inserted, on 1 July 2010, by section 388(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 33 ICA amount applied to pay other taxes
Debit
(1)
An ICA company has an imputation debit for—
(a)
an amount of overpaid income tax applied to pay an amount due under the Inland Revenue Acts:
(b)
an increased amount of tax as described in section RP 17B(3) (Tax pooling accounts and their use) applied to pay an amount due under the Inland Revenue Acts other than income tax.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 5 (amount applied to pay other taxes).
No debit
(3)
A debit under subsection (1) does not include an amount of overpaid income tax—
(a)
applied to satisfy a liability for income tax or provisional tax; or
(b)
relating to income tax paid before an imputation debit arises under section OB 41 (table O2: imputation debits, row 14 (debit for loss of shareholder continuity)), but only to the extent to which the amount of overpaid income tax is no more than the amount of the debit for loss of shareholder continuity.
Debit date
(4)
The debit date is the day the amount is applied.
Relationship with section OB 37
(5)
This section does not apply to an amount that gives rise to a debit under section OB 37.
Defined in this Act: amount, ICA company, imputation debit, income tax, Inland Revenue Acts, pay, provisional tax, shareholder
Compare: 2004 No 35 s ME 5(1)(l), (2)(k)
Section OB 33(1): substituted, on 6 October 2009, by section 389(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 33(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 389(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 33(5): added (with effect on 1 April 2008), on 6 October 2009, by section 389(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 34 ICA refund from tax pooling account
When this section applies
(1)
This section applies for an ICA company when—
(a)
the company has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under—
(i)
section OB 5 (table O1: imputation credits, row 3 (deposit in tax pooling account)); or
(ii)
section OB 6 (table O1: imputation credits, row 4 (transfer from tax pooling account)); and
(b)
the intermediary refunds the amount from the tax pooling account to the company.
Debit
(2)
The company has an imputation debit for the amount of the refund.
Table reference
(3)
The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 6 (refund from tax pooling account).
Debit date for companies other than qualifying companies
(4)
The debit date for a company that is not a qualifying company is the date found by applying the following paragraphs in order:
(a)
the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the imputation credit account on that date:
(b)
the day the refund is made to the extent of the remaining amount of the debit that is no more than the credit balance in the imputation credit account on the day of refund:
(c)
the last day of the previous tax year for the remainder of the debit.
Debit date for qualifying companies
(5)
The debit date for a qualifying company is the day the refund is made.
Defined in this Act: amount, company, ICA company, imputation credit, imputation credit account, imputation debit, intermediary, pay, qualifying company, tax pooling account, tax year
Compare: 2004 No 35 s ME 5(1)(ea), (2)(ea), (eb)
Section OB 34(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 98(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 34(4) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 34(4): substituted (with effect on 1 April 2008), on 6 October 2009, by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 34(4)(b): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 98(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 34(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 34(5): added (with effect on 1 April 2008), on 6 October 2009, by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 34(5): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 98(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 34 list of defined terms company: inserted (with effect on 1 April 2008), on 6 October 2009, by section 390(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 34 list of defined terms imputation credit account: inserted (with effect on 1 April 2008), on 6 October 2009, by section 390(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 34 list of defined terms qualifying company: added (with effect on 1 April 2008), on 6 October 2009, by section 390(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 34 list of defined terms tax pooling account: inserted (with effect on 1 April 2008), on 7 September 2010, by section 98(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 34 list of defined terms tax year: added (with effect on 1 April 2008), on 6 October 2009, by section 390(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 35 ICA transfer within tax pooling account
When this section applies
(1)
This section applies for an ICA company when—
(a)
the company has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under—
(i)
section OB 5 (table O1: imputation credits, row 3 (deposit in tax pooling account)); or
(ii)
section OB 6 (table O1: imputation credits, row 4 (transfer from tax pooling account)); and
(b)
the intermediary transfers the entitlement from the company to another person.
Debit
(2)
The company has an imputation debit for a tax year for the amount of the transfer of the entitlement to funds in the tax pooling account.
Table reference
(3)
The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 7 (transfer within tax pooling account).
Debit date for companies other than qualifying companies
(4)
The debit date for a company that is not a qualifying company is—
(a)
the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the account on that date; or
(b)
the day the transfer is made to the extent of the remaining amount of the debit that is no more than the credit balance in the imputation credit account on the day of the transfer; or
(c)
the last day of the previous tax year for the remainder of the debit.
Debit date for qualifying companies
(5)
The debit date for a qualifying company is the day the transfer is made.
Defined in this Act: amount, ICA company, imputation credit, imputation credit account, imputation debit, intermediary, pay, qualifying company, tax pooling account, tax year
Compare: 2004 No 35 s ME 5(1)(eb), (2)(ea), (eb)
Section OB 35(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 99(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 35(4)(b): substituted (with effect on 1 April 2008), on 6 October 2009, by section 391 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 35(5): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 99(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OB 35B ICA debit for transfer from tax pooling account for policyholder base liability
Debit
(1)
An ICA company has an imputation debit for the amount transferred from a tax pooling account to their tax account with the Commissioner, to the extent to which the company is a life insurer, and the amount satisfies its schedular income tax liability for schedular policyholder base income or its income tax liability for a life fund PIE that is a multi-rate PIE.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 7B (debit for transfer from tax pooling account for policyholder base liability).
Debit date
(3)
The debit date is the last day of the tax year.
Defined in this Act: ICA company, imputation credit, imputation debit, life insurer, schedular income tax liability, schedular policyholder base income, tax year
Section OB 35B: inserted, on 1 July 2010, by section 392(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 36 ICA refund of FDP
[Repealed]Section OB 36: repealed, on 1 April 2017, by section 197 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 37 ICA refund of tax credit
Debit
(1)
An ICA company has an imputation debit for—
(a)
the amount of a transfer under section LA 6(2)(d) (Remaining refundable credits: PAYE, RWT, and certain other items) to the extent to which the transfer does not lead to a refund of income tax:
(b)
the amount of a refund to the company under section LA 6(2)(e).
(c)
[Repealed]Exclusion: FDPA companies[Repealed]
(1B)
[Repealed]Exclusion: refund after debit under section OB 41
(1C)
Despite subsection (1), an ICA company has an imputation debit for a refundable tax credit arising in a tax year after a debit arises under section OB 41, reduced by the lesser of—
(a)
the debit under section OB 41:
(b)
the amount by which the refundable tax credit exceeds the total credits to the company’s imputation credit account, for amounts satisfying the company’s income tax liability, during the period from the date of the debit to the date on which the credit balance is to be determined under sections RM 13 and RM 14 (which relate to limits on refunds for ICA companies).
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 9 (refund of tax credit).
Debit date
(3)
The debit date is—
(a)
for a debit referred to in subsection (1)(a), the day the amount is transferred:
(b)
for a debit referred to in subsection (1)(b), the day the amount is refunded.
(c)
[Repealed]Defined in this Act: amount, ICA company, imputation debit, pay
Compare: 2004 No 35 s ME 5(1)(h), (2)(e)
Section OB 37(1) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 393(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 37(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 393(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 37(1)(c): repealed (with effect on 1 April 2009), on 30 March 2017, by section 198(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 37(1B) heading: repealed, on 1 April 2017, pursuant to section 198(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 37(1B): repealed, on 1 April 2017, by section 198(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 37(1C) heading: inserted, on 1 April 2018, by section 169(1) (and see section 169(2) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OB 37(1C): inserted, on 1 April 2018, by section 169(1) (and see section 169(2) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OB 37(3): substituted (with effect on 1 April 2008), on 6 October 2009, by section 393(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 37(3)(c): repealed (with effect on 1 April 2009), on 30 March 2017, by section 198(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 37 list of defined terms FDPA company: repealed, on 1 April 2017, by section 198(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 38 ICA overpayment of FDP
[Repealed]Section OB 38: repealed, on 1 April 2017, by section 199 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 39 ICA transfer for net foreign attributed income
[Repealed]Section OB 39: repealed (with effect on 30 June 2009), on 6 October 2009, by section 395(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 40 ICA attribution for personal services
Debit
(1)
An ICA company has an imputation debit for an amount of an attribution for personal services equal to the amount of an imputation credit under section OB 16.
Table references
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 13 (attribution for personal services). The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 14 (attribution for personal services).
Accounts adjusted
(3)
A debit under subsection (1) is recorded in the imputation credit account only if the company has accounted for an attribution of income under section GB 29 (Attribution rule: calculation).
Debit date
(4)
The debit date is the last day of the tax year that falls in the income year for which the company accounts in its financial statements for the attribution of income referred to in subsection (3).
Defined in this Act: amount, financial statements, ICA company, imputation credit, imputation credit account, imputation debit, income, income year, tax year
Compare: 2004 No 35 s ME 5(1)(ia), (2)(ha)
OB 41 ICA debit for loss of shareholder continuity
Debit
(1)
An ICA company has an imputation debit for the amount equal to the amount of an imputation credit retained in the imputation credit account and unused at the time at which shareholder continuity is lost.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity).
When debit arises
(3)
The debit arises at the time shareholder continuity is lost.
Qualifying companies
(3B)
This section does not apply to a qualifying company in circumstances other than those set out in section HA 18 (Treatment of dividends when qualifying company status ends), and that section overrides subsections (1) to (3).
Avoidance arrangements
(4)
Section GB 34 (ICA arrangements for carrying amounts forward) may exclude a company from the application of this section.
Defined in this Act: amount, ICA company, imputation credit, imputation credit account, imputation debit, qualifying company, shareholder
Compare: 2004 No 35 ss HG 13(6), ME 5(1)(i), (2)(h)
Section OB 41(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 87(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OB 41(3) heading: substituted (with effect on 1 April 2008), on 7 December 2009, by section 87(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OB 41(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 87(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OB 41(3B) heading: inserted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 117(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section OB 41(3B): inserted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 117(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section OB 41 list of defined terms qualifying company: inserted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 117(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section OB 41 compare note: amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 117(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
OB 42 ICA on-market cancellation
Debit
(1)
When an ICA company acquires its shares in an on-market cancellation, it has an imputation debit for an amount calculated using the formula—
ASC per share excess × tax rate ÷ (1 − tax rate).
Definitions of items in formula
(2)
In the formula,—
(a)
ASC per share excess is the amount distributed on the on-market cancellation that is more than the amount of the available subscribed capital per share calculated under the ordering rule:
(b)
tax rate is the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) for the tax year in which the acquisition occurs.
Table reference
(3)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 15 (on-market cancellation).
Negative result
(4)
If the formula produces a negative result, the debit is treated as zero.
Debit date
(5)
The debit date is the day the shares are acquired by the company in the on-market cancellation.
Defined in this Act: amount, available subscribed capital, ICA company, imputation debit, on-market cancellation, ordering rule, RWT, share
Compare: 2004 No 35 s ME 5(1)(c), (2)(c)
Section OB 42(1) formula: amended, on 1 April 2008, by section 498(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 42(2)(b): substituted, on 1 April 2008, by section 498(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 43 ICA breach of imputation ratio
Debit
(1)
An ICA company has an imputation debit for a breach of the benchmark dividend rules in section OB 61(5) for an amount calculated using the formula—
(net dividends × imputation ratio) − attached credits.
Definition of items in formula
(2)
In the formula,—
(a)
net dividends is the total amount of all dividends paid by the company during the tax year, excluding the amount of imputation credits attached to the dividends:
(b)
imputation ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios) for an imputation credit or, if less, the greatest imputation ratio of dividends paid by the company for the tax year:
(c)
attached credits is the total amount of all imputation credits attached to dividends paid by the company for the tax year.
Table reference
(3)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 16 (breach of imputation ratio).
Ratio change declaration
(4)
A debit under subsection (1) does not arise if the company provides a ratio change declaration under section OB 61(6).
Debit date
(5)
The debit date is the last day of the tax year.
Defined in this Act: amount, benchmark dividend, dividend, ICA company, imputation credit, imputation debit, imputation ratio, maximum permitted ratio, tax year
Compare: 2004 No 35 s ME 5(1)(f), (2)(f)
Section OB 43(2)(a): amended, on 1 April 2017, by section 200(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 43 list of defined terms FDP credit: repealed, on 1 April 2017, by section 200(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 44 ICA debit on leaving wholly-owned group
Debit
(1)
An ICA company (company A) has an imputation debit for an amount equal to the amount of an imputation debit that another company (company B) chooses under section OB 13 as a debit to company A’s imputation credit account when company B leaves a wholly-owned group of companies.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 17 (debit balance on leaving wholly-owned group).
Debit date
(3)
The debit date is the date when the company B stops being part of the wholly-owned group.
Defined in this Act: amount, company, ICA company, imputation credit account, imputation debit, wholly-owned group of companies
Compare: 2004 No 35 ss ME 5(1)(fb), (2)(fb), ME 9B(2)(a)(i)
OB 45 ICA redemption debit
Debit
(1)
An ICA company has an imputation debit for the amount of a redemption debit.
When redemption debit arises
(2)
A redemption debit arises when—
(a)
a company that is not an Australian ICA company is—
(i)
the manager of a unit trust; or
(ii)
the trustee or manager of a group investment fund; and
(b)
the company derives a dividend on the redemption or cancellation of—
(i)
a unit issued by the unit trust; or
(ii)
an interest of an investor in the group investment fund; and
(c)
the company has acquired the unit or interest in the ordinary course of its management activities for the unit trust or group investment fund; and
(d)
the unit or interest had been acquired by the company on the same terms as those offered to the investors in the unit trust or group investment fund.
Calculating amount
(3)
The debit is for the greater of the amounts described in subsections (4) and (6) calculated for the income year in which the company derived the dividend referred to in subsection (2)(b).
First amount
(4)
The first amount is calculated using the formula—
credits attached − imputation debits.
Definition of items in formula
(5)
In the formula in subsection (4),—
(a)
credits attached is the total amount of all imputation credits attached to dividends derived in the circumstances set out in subsection (2) by the company for the income year:
(b)
imputation debits is the total amount of all imputation debits arising for the income year under—
(i)
section OB 41 in the company’s imputation credit account; or
(ii)
section OP 42 (Consolidated ICA debit for loss of shareholder continuity) in the imputation credit account of the consolidated imputation group of which the company is part.
Second amount
(6)
The second amount is calculated using the formula—
(total dividends ÷ taxable income) × (tax liability − debits).
Definition of items in formula
(7)
In the formula in subsection (6),—
(a)
total dividends is the total amount of all dividends derived in the circumstances set out in subsection (2), including imputation credits attached to the dividends:
(b)
taxable income is the taxable income of the company for the income year in which the dividends are derived:
(c)
tax liability is the company’s income tax liability for the income year:
(d)
debits is the imputation credits attached to the dividends that have been cancelled by an imputation debit arising during the income year under—
(i)
section OB 41 in the company’s imputation credit account; or
(ii)
section OP 42 in the imputation credit account of the consolidated imputation group of which the company is part.
Table references
(8)
The table references are as follows:
(a)
the imputation debit in subsection (1) is referred to in table O2: imputation debits, row 18 (redemption debit):
(b)
the imputation debit in subsection (5)(b)(i) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity):
(c)
the imputation debit in subsection (5)(b)(ii) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity):
(d)
the imputation debit in subsection (7)(d)(i) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity):
(e)
the imputation debit in subsection (7)(d)(ii) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity).
Debit date
(9)
The debit date is the date on which the company or the group’s nominated company files the return of income for the income year in which the dividend is derived.
Defined in this Act: amount, Australian ICA company, company, consolidated imputation group, dividend, group investment fund, ICA company, imputation credit, imputation credit account, imputation debit, income, income tax, income tax liability, income year, investor, nominated company, return of income, shareholder, tax, taxable income, trustee, unit trust
Compare: 2004 No 35 s ME 41
Section OB 45(5)(a): amended, on 1 April 2017, by section 201(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 45(7)(a): amended, on 1 April 2017, by section 201(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 45 list of defined terms FDP credit: repealed, on 1 April 2017, by section 201(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 46 ICA transfer from member fund
Debit
(1)
An ICA company has an imputation debit for an amount calculated using the formula—
expenditure transferred × tax rate.
Definition of items in formula
(2)
In the formula,—
(a)
expenditure transferred is the amount of expenditure transferred under sections DV 5 to DV 7 (which relate to expenditure related to investment funds) by the company, as a member fund, to a master fund:
(b)
tax rate is the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits).
Table reference
(3)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 19 (transfer from member fund).
Debit date
(4)
The debit date is the last day of the tax year corresponding to the income year in which the expenditure is deducted.
Defined in this Act: amount, ICA company, imputation debit, master fund, tax year
Compare: 2004 No 35 s ME 5(1)(ja), (2)(ia)
Section OB 46(2)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 46 list of defined terms basic rate: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
OB 46B ICA transfer from group company to loss-using group company
Debit
(1)
An ICA company that transfers an imputation credit under an election under section OB 83 to a company that uses a tax loss made available under section IC 5 (Company B using company A’s tax loss) has an imputation debit for the amount of the imputation credit transferred.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 19B (transfer of credit to loss-using group company).
Debit date
(3)
The debit date is the day on which the imputation credit is transferred.
Defined in this Act: company, ICA company, imputation credit, imputation debit, tax loss
Section OB 46B: inserted (with effect on 1 October 2016 and applying for the 2017–18 and later income years), on 30 March 2017, by section 202(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 47 Debit for policyholder base imputation credits
Debit
(1)
An ICA company has an imputation debit for the amount of an imputation credit attached to a dividend derived by the company, to the extent to which it is—
(a)
derived by it as a life insurer; and
(b)
apportioned to their policyholder base; and
(c)
not affected by a debit under section OB 41.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 20 (debit for policyholder base imputation credits).
Debit date
(3)
The debit date is the last day of the tax year.
Defined in this Act: ICA company, imputation credit, imputation debit, life insurer, policyholder base, tax year
Section OB 47: substituted, on 1 July 2010, by section 396(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 47(1): replaced (with effect on 1 July 2010), on 27 February 2014, by section 121(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
OB 47B Tax paid by recipients of R&D loss tax credits
When this section applies
(1)
This section applies for an ICA company and a tax year (the current year) when the company has an R&D loss tax credit under section MX 4 (R&D loss tax credits) for the current year, or an earlier tax year, that does not give rise to R&D repayment tax under section MX 7 (Reinstatement of R&D tax losses and R&D repayment tax) before or in the income year corresponding to the current year.
Debit
(2)
The ICA company has an imputation debit for the current year equal to the lesser of the following:
(a)
the imputation credit that the company has for the current year under section OB 4:
(b)
the total amount of the company’s R&D loss tax credits, for the period that begins with the earliest tax year to which the tax credits relate and ends with the current year, minus the total amount of imputation debits under this section for tax years that are in that period and end before the current year.
Table reference
(3)
The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 20B (recipients of R&D loss tax credits).
Debit date
(4)
The debit date is the last day of the current year.
Defined in this Act: amount, ICA company, imputation credit, imputation debit, R&D loss tax credit, tax year
Section OB 47B: inserted (with effect on 1 April 2015 and applying for income years beginning on or after that date), on 24 February 2016, by section 215(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OB 47B(1): amended, on 29 March 2018 (with effect on 1 April 2015), by section 170 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
OB 48 ICA credit balance when Maori authority credit account starts
Debit
(1)
An ICA company has an imputation debit for a credit balance in the company’s imputation credit account immediately before the company becomes a Maori authority.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 21 (credit balance when Maori authority credit account starts).
Debit date
(3)
The debit date is the day before the company becomes a Maori authority.
Defined in this Act: ICA company, imputation credit account, imputation debit, Maori authority
Compare: 2004 No 35 s ME 5(1)(ka), (2)(ja)
OB 49 ICA replacement payment by company under share-lending arrangement
Debit
(1)
An ICA company has an imputation debit for the amount of an imputation credit attached under section OB 64 to a replacement payment paid by the company under a share-lending arrangement.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 22 (replacement payment under share-lending arrangement).
Debit date
(3)
The debit date is the day the replacement payment is paid.
Defined in this Act: amount, ICA company, imputation credit, imputation debit, pay, replacement payment, share-lending arrangement
Compare: 2004 No 35 s ME 5(1)(ab), (2)(ab)
OB 50 ICA returning share transfer
Debit
(1)
An ICA company has an imputation debit for the amount of an imputation credit attached to a dividend paid to the company as a share user in a returning share transfer that is not a share-lending arrangement.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 23 (returning share transfer).
Debit date
(3)
The debit date is the day the dividend is paid.
Defined in this Act: amount, dividend, ICA company, imputation credit, imputation debit, pay, returning share transfer, share-lending arrangement, share user
Compare: 2004 No 35 s ME 5(1)(ac), (2)(ac)
OB 51 ICA credit transfer by company
Debit
(1)
An ICA company has an imputation debit for the amount of an imputation credit attached to a dividend that is paid to the company and shown in a credit transfer notice given by the company.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 24 (credit transfer notice).
Debit date
(3)
The debit date is the day the dividend is paid.
Defined in this Act: amount, credit transfer notice, dividend, ICA company, imputation credit, imputation debit, pay
Compare: 2004 No 35 s ME 5(1)(ad), (2)(ac)
OB 52 ICA transfer to consolidated imputation group
When this section applies
(1)
This section applies when the nominated company of a consolidated imputation group makes an election under section OP 22(2) (Consolidated ICA transfer from group company’s ICA) for a group company.
Debit
(2)
The group company has an imputation debit for the amount of the credit balance that is transferred to the imputation credit account of the consolidated imputation group.
Table reference
(3)
The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 25 (transfer to consolidated imputation group’s ICA).
Debit date
(4)
The debit date is the same as the credit date for the credit to the imputation credit account of the consolidated imputation group for the amount of the credit balance transferred.
Defined in this Act: amount, consolidated imputation group, imputation credit, imputation credit account, imputation debit, nominated company
Section OB 52: replaced (with effect on 1 April 2008), on 30 March 2021, by section 124(1) (and see section 124(2) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
OB 53 ICA debit on resident’s restricted amalgamation
Debit
(1)
An ICA company has an imputation debit for the amount of a debit described in subsection (3) that arises on or after a resident’s restricted amalgamation in the account of the amalgamated company under 1 of the sections listed in subsection (3).
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 26 (debit on resident’s restricted amalgamation).
Sections
(3)
The sections are—
(a)
section OA 10 (When credits or debits due to amalgamating company but not recorded) for imputation debits in the imputation credit account of an amalgamating company:
(b)
[Repealed](c)
[Repealed](d)
[Repealed](e)
section OA 14 (Continuity of shareholding when group companies amalgamate) for imputation debits in the imputation credit account of a consolidated imputation group that ends its existence on the amalgamation.
(f)
[Repealed](g)
[Repealed]Defined in this Act: amalgamated company, amalgamating company, amount, consolidated group, consolidated imputation group, ICA company, imputation credit account, imputation debit, resident’s restricted amalgamation
Compare: 2004 No 35 ss ME 29, MG 17, MI 13
Section OB 53(3)(b): repealed, on 1 April 2017, by section 203(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 53(3)(c): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 94(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 53(3)(d): repealed, on 30 March 2017, by section 203(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 53(3)(f): repealed, on 1 April 2017, by section 203(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 53(3)(g): repealed, on 30 March 2017, by section 203(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 53 list of defined terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 94(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 53 list of defined terms CTR debit: repealed (with effect on 1 July 2011), on 7 May 2012, by section 94(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 53 list of defined terms FDP account: repealed, on 1 April 2017, by section 203(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 53 list of defined terms FDP debit: repealed, on 1 April 2017, by section 203(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 53 list of defined terms policyholder credit account: repealed, on 30 March 2017, by section 203(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 53 list of defined terms policyholder debit: repealed, on 30 March 2017, by section 203(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 54 ICA tax advantage arrangement
Debit
(1)
An ICA company has an imputation debit for the amount of a debit for a tax advantage arrangement determined under section GB 36 (Reconstruction of imputation arrangements to obtain tax advantage).
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 27 (tax advantage arrangement).
Debit date
(3)
The debit date is the last day of the tax year in which the debit for the tax advantage arrangement is determined.
Defined in this Act: amount, arrangement, ICA company, imputation debit, tax advantage, tax year
Compare: 2004 No 35 s ME 5(1)(j), (2)(i)
OB 55 ICA retrospective imputation credit
Debit
(1)
An ICA company has an imputation debit for an imputation credit that is retrospectively attached to a non-cash dividend under section OB 62.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 28 (retrospective imputation credit).
Debit date
(3)
The debit date is the day the dividend is paid.
Defined in this Act: ICA company, imputation credit, imputation debit, non-cash dividend, pay
Compare: 2004 No 35 s ME 6(4)(a)
OB 56 ICA final balance
Debit
(1)
An ICA company has an imputation debit for a credit balance in the imputation credit account when the company stops being an ICA company.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 29 (final balance).
Debit date
(3)
The debit date is the day the company stops being an ICA company.
Defined in this Act: ICA company, imputation credit account, imputation debit
Compare: 2004 No 35 s ME 5(1)(k), (2)(j)
OB 57 ICA refund of NRWT
Debit
(1)
An Australian ICA company has an imputation debit for an amount of a refund of NRWT that gave rise to an imputation credit under section OB 27.
Table references
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 30 (refund of NRWT). The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 25 (NRWT withheld).
Debit date
(3)
The debit date is the day the refund is made.
Defined in this Act: amount, amount of tax, Australian ICA company, imputation credit, imputation debit, NRWT
Compare: 2004 No 35 s ME 5(1A)(a), (2A)
OB 58 ICA refund of amount of tax for schedular payment
Debit
(1)
An Australian ICA company has an imputation debit for the amount of a refund of an amount of tax for a schedular payment that gave rise to an imputation credit under section OB 28.
Table references
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 31 (refund of amount of tax for schedular payment). The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 26 (amount of tax for schedular payment).
Debit date
(3)
The debit date is the day the refund is made.
Defined in this Act: amount, amount of tax, Australian ICA company, imputation credit, imputation debit, pay, schedular payment
Compare: 2004 No 35 s ME 5(1A)(b), (2A)
OB 59 ICA refund of schedular income tax
Debit
(1)
An Australian ICA company has an imputation debit for the amount of a refund of schedular income tax that gave rise to an imputation credit under section OB 29.
Table references
(2)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 32 (refund of schedular income tax). The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 27 (payment of schedular income tax).
Debit date
(3)
The debit date is the day the refund is made.
Defined in this Act: amount, Australian ICA company, imputation credit, imputation debit, pay
Compare: 2004 No 35 s ME 5(1A)(c), (2A)
Imputation credits attached to dividends
OB 60 Imputation credits attached to dividends
Attaching imputation credits
(1)
When an ICA company pays a dividend, it may attach an imputation credit to the dividend. Section OB 63 overrides this section.
Retrospective attachment
(2)
The ICA company may determine that an imputation credit is retrospectively attached to a dividend in the circumstances described in section OB 62.
Imputation ratio for dividend
(3)
A dividend with an imputation credit attached has an imputation ratio calculated using the formula—
credit attached ÷ net dividend paid.
Definition of items in formula
(4)
In the formula in subsection (3),—
(a)
credit attached is the amount of the imputation credit attached to the dividend:
(b)
net dividend paid is the amount of the dividend paid, excluding the amount of the imputation credit attached.
Maximum permitted ratio
(5)
A dividend with an imputation credit attached must not have an imputation ratio that is more than the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios).
Conversion of AUD dividend
(6)
A dividend paid in Australian currency by an Australian ICA company must be converted into New Zealand currency, calculated using the formula—
Australian dollar value × exchange rate.
Definition of items in formula
(7)
In the formula in subsection (6),—
(a)
Australian dollar value is the amount of the dividend in Australian dollars:
(b)
exchange rate is the close of trading spot exchange rate for the Australian dollar on—
(i)
the day the dividend is declared if that day is no more than 3 months before the dividend is paid; or
(ii)
the day the dividend is paid if that day is more than 3 months after the dividend is declared.
Defined in this Act: amount, Australian ICA company, close of trading spot exchange rate, dividend, ICA company, imputation credit, imputation ratio, income year, maximum permitted ratio, pay, tax year
Compare: 2004 No 35 ss ME 1B, ME 6, ME 8(1), (2)
Section OB 60(4)(b): amended, on 1 April 2017, by section 204(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 60 list of defined terms FDP credit: repealed, on 1 April 2017, by section 204(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 61 ICA benchmark dividend rules
When this section applies
(1)
This section applies when an ICA company pays a dividend on more than 1 occasion during a tax year. Subsection (2) overrides this subsection.
Exclusions
(2)
This section does not apply to the following dividends:
(a)
a dividend that is the subject of an election by a statutory producer board under sections OB 73 to OB 75:
(b)
a dividend that is the subject of an election by a co-operative company under sections OB 78 to OB 80:
(bb)
an amount treated as a dividend under section CB 32C (Dividend income for first year of look-through company):
(c)
a dividend paid when the company is not an ICA company.
Benchmark dividend
(3)
The first dividend of the tax year is the benchmark dividend.
Same imputation ratio
(4)
The imputation ratio of a dividend paid after the benchmark dividend must be the same as the imputation ratio of the benchmark dividend. This subsection is modified by section OZ 9 (Benchmark dividends: ratio change).
Breach of imputation ratio
(5)
A breach of subsection (4) gives rise to an amount of an imputation debit under section OB 43 (table O2: imputation debits, row 16 (breach of imputation ratio)) calculated using the formula in section OB 43(1).
Ratio change declaration
(6)
An ICA company may notify the Commissioner that the dividend is not part of an arrangement to obtain a tax advantage by providing a ratio change declaration stating that the dividend is not part of an arrangement to which sections GB 35 and GB 36 (which relate to imputation arrangements to obtain tax advantage) apply. The company must provide the declaration before the dividend is paid, or by a later date if the Commissioner allows. For the purposes of this subsection, the dividend must not be part of an arrangement to obtain a tax advantage. This subsection overrides subsection (5).
Consolidated imputation group[Repealed]
(7)
[Repealed]Group debit
(8)
Under section OP 2(2) (When credits and debits arise only in group accounts), a breach of an imputation ratio alternatively gives rise to an imputation debit under section OP 43 (Consolidated ICA breach of imputation ratio) (table O20: imputation debits of consolidated imputation groups, row 17 (breach of imputation ratio)) if the company is part of a consolidated imputation group.
Treatment of group dividends
(9)
In the application of this section to a consolidated imputation group, a dividend paid between group companies is disregarded.
Defined in this Act: arrangement, benchmark dividend, Commissioner, company, consolidated imputation group, co-operative company, dividend, ICA company, imputation debit, imputation ratio, notify, pay, statutory producer board, tax advantage, tax year
Compare: 2004 No 35 ss ME 8(2), (3), ME 14(2)
Section OB 61(2)(bb): inserted, on 30 March 2017, by section 205 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 61(4): amended, on 1 October 2010, by section 12 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OB 61(7) heading: repealed (with effect on 1 April 2008), on 6 October 2009, pursuant to section 397(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 61(7): repealed (with effect on 1 April 2008), on 6 October 2009, by section 397(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 62 Retrospective attachment of imputation credits
When this section applies
(1)
This section applies in relation to a dividend—
(a)
arising from a transfer pricing arrangement when an ICA company pays a non-cash dividend whose amount is later adjusted under section GC 7 or GC 8 (which relate to transfer pricing arrangements); or
(b)
arising under subpart FL (Emigration of resident companies) when an emigrating company that was an ICA company immediately before the time of emigration is treated under section FL 2 or FL 3 (which relate to the treatment of emigrating companies and their shareholders) as paying a distribution to shareholders; or
(c)
that an ICA company pays and that is described in section CD 1(3) (Dividend).
Imputation credits attached retrospectively
(2)
The company may attach retrospectively an imputation credit to the dividend or distribution, as applicable.
Limit for ICA company
(3)
The amount of all imputation credits attached retrospectively by a company referred to in subsection (1)(a) or (c) during a tax year must not be more than the lesser of—
(a)
the credit balance of the company’s imputation credit account at the end of the tax year in which the dividend is paid; or
(b)
the credit balance of the company’s imputation credit account at the end of each of the tax years in the period that runs from the tax year of payment of the dividend to the tax year in which the credit is attached retrospectively under subsection (1).
Limit for emigrating company
(4)
The amount of all imputation credits attached retrospectively by a company referred to in subsection (1)(b) must be no more than the credit balance of the company’s imputation credit account immediately before the time of emigration.
When subsection (6) applies
(5)
Subsection (6) applies if—
(a)
a company provides a company dividend statement and issues a shareholder dividend statement for a non-cash dividend at the time it retrospectively attaches an imputation credit; and
(b)
the adjustment under section GC 7 or GC 8 results in a payment of income tax; and
(c)
the attachment of the imputation credit would otherwise result in a liability for imputation penalty tax.
New credit date
(6)
The credit date for the imputation credit arising for the payment of the income tax referred to in subsection (5)(b) is the day on which the non-cash dividend is paid, and the company is excused a breach of section 69 of the Tax Administration Act 1994 for not filing a correct annual ICA return through the retrospective attachment of an imputation credit.
Statements still required
(7)
A company that does not meet the requirement of subsection (5)(a) remains liable to—
(a)
provide a company dividend statement; and
(b)
issue a shareholder dividend statement for the non-cash dividend and the retrospective attachment of an imputation credit.
When subsection (9) applies
(8)
Subsection (9) applies when an amount of tax paid by an emigrating company is attributable to income derived before the time of emigration or to the application of subpart FL.
Amount of tax paid by emigrating company
(9)
The amount of tax referred to in subsection (8) is treated for the purposes of this subpart as paid immediately before the time of emigration if—
(a)
the company determines to attach an imputation credit to a dividend; and
(b)
the imputation credit is not less than the amount of tax; and
(c)
the company notifies the Commissioner when providing the company dividend statement.
Defined in this Act: amount, amount of tax, annual ICA return, arrangement, Commissioner, company dividend statement, dividend, emigrating company, ICA company, imputation credit, imputation credit account, imputation penalty tax, income, income tax, non-cash dividend, notify, pay, shareholder, shareholder dividend statement, tax year, time of emigration
Compare: 2004 No 35 s ME 6
Section OB 62(1): replaced (with effect on 30 August 2022), on 31 March 2023, by section 93(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section OB 62(3): amended (with effect on 30 August 2022), on 31 March 2023, by section 93(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
OB 63 Australian dividends
No credits attached
(1)
Despite section OB 60(1), an ICA company must not attach an imputation credit to a dividend if—
(a)
the Income Tax Assessment Act 1997 (Aust) applies to the payment of the dividend by the company; and
(b)
the dividend is paid in relation to a share that is, or forms part of, a debt interest under that Act; and
(c)
the payment of the dividend is included in the company’s return of income to the Australian Federal Commissioner of Taxation.
Exclusion: groups of companies
(2)
Subsection (1) does not apply in relation to a share issued before 21 July 2005 if, when the dividend is paid, the shareholder and the ICA company—
(a)
are not part of the same group of companies:
(b)
are part of the same wholly-owned group of companies and not resident in New Zealand.
Exclusion: reasons for acquisition of shares
(3)
Subsection (1) does not apply in relation to a share issued before 21 July 2005 if—
(a)
the shareholder and the ICA company are part of the same group of companies; and
(b)
the shareholder acquired the share—
(i)
as part of a sharebroking business:
(ii)
as an investment held by the shareholder as part of an insurance business:
(iii)
as security for a loan given as part of a business of lending money:
(iv)
as a trustee for a beneficiary who is not a company that is part of the same group of companies as the shareholder:
(v)
for a reason that does not include the fact that the shareholder and the ICA company were part of the same group of companies.
Defined in this Act: business, company, dividend, group of companies, ICA company, imputation credit, pay, resident in New Zealand, share, shareholder, trustee, wholly-owned group of companies
Compare: 2004 No 35 s ME 6(1B)–(1D)
OB 64 Replacement payments
Attaching credits
(1)
On making a replacement payment, a share user under a share-lending arrangement may attach an imputation credit to the payment.
Amount of credit
(2)
The amount of the imputation credit must be equal to or less than the amount of any imputation credit attached to a dividend relating to the replacement payment that is received by the share user before the replacement payment is made.
Defined in this Act: amount, dividend, imputation credit, pay, replacement payment, share-lending arrangement, share user
Compare: 2004 No 35 s ME 6B
Further income tax
OB 65 Further income tax for ICA closing debit balance
Liability
(1)
An ICA company is liable to pay further income tax for a debit balance in the company’s imputation credit account at the end of a tax year.
Exclusion
(2)
An imputation debit arising under section OB 46 (table O2: imputation debits, row 19 (transfer from member fund)) is disregarded when determining under subsection (1) if the company has a debit balance at the end of a tax year.
Due date
(3)
The company must pay the further income tax to the Commissioner no later than 20 June following the end of the tax year.
Defined in this Act: Commissioner, company, further income tax, ICA company, imputation credit account, imputation debit, pay, tax year
Compare: 2004 No 35 s ME 9(1), (1A), (2)
OB 66 Further income tax when company stops being ICA company
Liability
(1)
An ICA company is liable to pay further income tax for a debit balance in the company’s imputation credit account when the company stops being an ICA company.
Due date
(2)
The company must pay the further income tax to the Commissioner—
(a)
by the day the company stops being an ICA company; or
(b)
for a company that is no longer an ICA company because it becomes a portfolio investment entity, by the end of the tax year in which it stops being an ICA company.
Paramount section
(3)
A company that stops being an ICA company on the last day of a tax year is liable to pay further income tax under this section and not under section OB 65.
Defined in this Act: Commissioner, company, further income tax, ICA company, imputation credit account, pay, portfolio investment entity, tax year
Compare: 2004 No 35 s ME 9(3)
Section OB 66(2): substituted, on 1 April 2008, by section 499(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 66 list of defined terms portfolio investment entity: inserted, on 1 April 2008, by section 499(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 67 Reduction of further income tax
Debit at previous year-end
(1)
An ICA company’s liability for further income tax under sections OB 65 and OB 66 may be reduced under subsection (2) if—
(a)
a debit balance existed in the company’s imputation credit account at the end of a tax year; and
(b)
the credits that arise in the account in the following tax year totals less than the debit balance; and
(c)
the company notifies the Commissioner.
Reduction applying for consecutive tax years
(2)
In relation to 2 tax years that are consecutive, the liability for further income tax at the end of the second tax year is reduced to the amount calculated using the formula—
debit balance at end of second year − first year adjustment.
Definition of items in formula
(2B)
In the formula in subsection (2),—
(a)
debit balance at end of second year is the amount of the debit balance in the company’s imputation credit account at the end of the second tax year:
(b)
first year adjustment is the greater of zero and the amount by which the first year’s debit balance in the company’s imputation credit account exceeds the credits made to the account during the second tax year.
Qualifying companies
(3)
The liability of an ICA company that is a qualifying company for further income tax under sections OB 65 and OB 66 may be reduced under subsection (4) if an imputation debit arises under section OB 32 (table O2: imputation debits, row 4 (refund of income tax)) in the company’s imputation credit account before the end of the tax year for which the liability arises.
Amount of reduction
(4)
The liability of the qualifying company for further income tax at the end of the tax year referred to in subsection (3) is reduced by an amount calculated using the formula—
refunds − credits.
Definition of items in formula
(5)
In the formula in subsection (4),—
(a)
refunds is the total amount of all refunds of income tax paid to the company before the debit balance creating the liability for further income tax referred to in subsection (3) arises:
(b)
credits is the total amount of all credits to the company’s imputation credit account for the period that runs from the tax year in which the first refund was received to the time the calculation is made.
Defined in this Act: amount, Commissioner, further income tax, ICA company, imputation credit account, imputation debit, imputation rules, income tax, notify, pay, qualifying company, tax year
Compare: 2004 No 35 s ME 9(7)–(9)
Section OB 67(2) heading: substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), pursuant to section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 67(2): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 67(2): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 206(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 67(2B) heading: inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 67(2B): inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 67(2B)(b): replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 206(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 67(5): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OB 68 Income tax paid satisfying liability for further income tax
Election
(1)
On meeting the requirements of subsection (2), an ICA company that is liable for further income tax may choose to satisfy the liability through a payment of income tax.
Requirements
(2)
The company must pay the income tax—
(a)
after the end of the tax year in which the relevant debit balance arises; and
(b)
for an income year corresponding to the tax year in which the company is an ICA company.
Payment credited
(3)
The payment of income tax satisfies the company’s liability to pay further income tax.
When treated as paid
(4)
The further income tax is treated as paid on the date on which the Commissioner receives the payment of income tax.
Defined in this Act: Commissioner, further income tax, ICA company, income tax, income year, pay, tax year
Compare: 2004 No 35 s ME 9(5A), (8), (9)
OB 69 Further income tax paid satisfying liability for income tax
Election
(1)
An ICA company that pays further income tax may choose to treat the payment as satisfying a liability of the company to pay income tax or provisional tax.
ICA company status
(2)
The liability for income tax or provisional tax referred to in subsection (1) must be for an income year corresponding to a tax year in which the company is an ICA company.
Alternative for consolidated imputation group
(3)
A company that is part of a consolidated imputation group may choose that the payment under subsection (1) satisfies a group liability for income tax or provisional tax that arises at or after the time of payment.
When treated as paid
(4)
The liability for income tax or provisional tax is treated as paid on the day on which the further income tax is paid.
Australian ICA company
(5)
An Australian ICA company may choose to convert a payment of further income tax into a tax loss of an amount calculated under subsection (7). Subsection (6) overrides this subsection.
Requirement
(6)
The election under subsection (5) may be made only if no possibility exists that the further income tax can be credited against a future income tax liability of the company.
Tax loss
(7)
For the purposes of subsection (5), the amount of the tax loss for the payment of further income tax is calculated using the formula—
further income tax paid ÷ tax rate.
Definition of items in formula
(8)
In the formula,—
(a)
further income tax paid is the amount of further income tax paid that is not credited against an income tax liability:
(b)
tax rate is the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) at the time the further income tax is paid.
Benefit of the loss
(9)
For the purposes of subsection (5), the company may choose that the tax loss is attributed to itself or to another company that is part of the same wholly-owned group of companies.
When loss is attributed
(10)
The tax loss referred to in subsection (5) is a loss for the income year corresponding to the tax year in which the company paid the further income tax.
Defined in this Act: amount, Australian ICA company, consolidated imputation group, further income tax, ICA company, income tax, income tax liability, income year, pay, provisional tax, tax loss, tax year, wholly-owned group of companies
Compare: 2004 No 35 ss ME 9(5), (5B), ME 13(6)
Section OB 69(8)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 69 list of defined terms basic rate: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
OB 70 Application of other provisions
When it is appropriate for the purposes of this section, the other sections of this Act and the Tax Administration Act 1994—
(a)
apply to further income tax as if they addressed further income tax and not income tax; and
(b)
apply, modified as necessary, to ensure their application to further income tax rather than income tax; and
(c)
do not override the imputation rules or section 101 of the Tax Administration Act 1994.
Defined in this Act: further income tax, imputation rules, income tax
Compare: 2004 No 35 s ME 9(6)
Imputation additional tax
OB 71 Imputation additional tax on leaving group of companies
When this section applies
(1)
This section applies in a tax year when—
(a)
a company (company A) stops being part of a group of companies (the former group), because of a change in the ultimate owner of the company, and becomes part of a wholly-owned group of companies (the new group); and
(b)
if the former group is a wholly-owned group of companies, the loss balance carried forward from the previous tax year for companies in the former group is more than $1,000,000; and
(c)
if the former group is not a wholly-owned group of companies, company A has transferred imputation credits under section OB 83 to a company in the former group.
Sources of liability
(1B)
Company A is liable for imputation additional tax under—
(a)
subsection (2), if the company has a debit balance in the imputation credit account when the ultimate owner of the company changes:
(b)
subsection (4), if the company has an amount of excess entitlement under subsection (5) when the ultimate owner of the company changes.
Liability arising from debit balance
(2)
At the time company A stops being part of the former group, it may choose to reduce or eliminate the debit balance by paying imputation additional tax of an amount no greater than the debit balance but, in dealing with the liability, it may transfer some or all of the debit balance under subsection (3) or choose to use its excess entitlement under subsection (4), or a combination of both.
Debit balance
(3)
Company A may choose to transfer under section OB 44 some or all of a debit balance in the company’s imputation credit account to another company (company B) in the former group. An imputation additional tax liability remains for the amount of the debit balance that is not transferred.
Liability arising from excess entitlement
(4)
Company A is liable for an amount of imputation additional tax equal to the amount of the excess entitlement described in subsection (5) reduced, to no less than zero, by the amount of any payment that company A—
(a)
made as provisional tax or income tax; and
(b)
chooses to treat as having been paid by company B.
Amount of excess entitlement
(5)
Company A’s excess entitlement at the time it stops being part of the former group is 1 of the following amounts:
(a)
zero, if the credit balance of its imputation credit account at the time is equal to or more than—
(i)
the amount in the tax pooling account provided by or for the benefit of company A that is more than its liability to pay income tax or provisional tax at the time; or
(ii)
the entitlement company A would have to a refund under sections RM 2, RM 4, and RM 5 (which relate to refunds of excess tax) as if sections RM 13 to RM 17 (which relate to limits on refunds) did not apply; or
(b)
the total of the amounts referred to in paragraph (a)(i) and (ii) if no credit balance exists at the time; or
(c)
the excess of the total of the amounts referred to in paragraph (a)(i) and (ii) over the credit balance, if paragraph (b) does not apply.
Due date
(6)
If company A chooses to pay imputation additional tax under subsections (2) and (4), it must pay the amount to the Commissioner no later than the 20th day of the month following the month in which company A stops being part of the former group.
Joint liability
(7)
Company A and all companies in the former group are jointly liable for a payment of imputation additional tax under subsection (6). A payment of imputation additional tax does not satisfy any other liability of company A or the former group.
Payment by excess tax
(8)
Company A, or another company in the former group, may choose to apply an excess tax payment to satisfy company A’s liability.
Form of election
(9)
An election under this section must follow the form of an election under section OB 13(5). However, if subsection (3) or (4) apply to transfer a debit or treat an amount of tax as having been paid, company A must also provide a notice of agreement from company B in relation to the amount of excess tax payment.
Defined in this Act: amount, Commissioner, company, excess tax payment, group of companies, imputation additional tax, imputation credit, imputation credit account, income tax, income tax liability, loss balance, notice, pay, provisional tax, tax loss, tax pooling account, tax year, ultimate owner, wholly-owned group of companies
Compare: 2004 No 35 s ME 9B
Section OB 71 heading: replaced (with effect on 1 October 2016), on 30 March 2017, by section 207(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 71(1): replaced (with effect on 1 October 2016), on 30 March 2017, by section 207(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 71(1B) heading: inserted (with effect on 1 April 2008), on 7 September 2010, by section 100(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 71(1B): inserted (with effect on 1 April 2008), on 7 September 2010, by section 100(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 71(2) heading: substituted (with effect on 1 April 2008), on 7 September 2010, by section 100(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 71(2): amended (with effect on 1 October 2016), on 30 March 2017, by section 207(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 71(3): amended (with effect on 1 October 2016), on 30 March 2017, by section 207(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 71(4) heading: substituted (with effect on 1 April 2008), on 7 September 2010, by section 100(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 71(4): substituted (with effect on 1 April 2008), on 7 September 2010, by section 100(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 71(4)(a): amended (with effect on 1 April 2008), on 6 October 2009, by section 398(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 71(5): amended (with effect on 1 October 2016), on 30 March 2017, by section 207(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72(5)(a)(ii): amended (with effect on 1 April 2013), on 17 July 2013, by section 80 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section OB 71(5)(c): substituted (with effect on 1 April 2008), on 6 October 2009, by section 398(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 71(6): amended (with effect on 1 October 2016), on 30 March 2017, by section 207(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 71(6): amended (with effect on 1 April 2008), on 7 September 2010, by section 100(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 71(7): amended (with effect on 1 October 2016), on 30 March 2017, by section 207(7) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 71(8): amended (with effect on 1 October 2016), on 30 March 2017, by section 207(8) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 71(9): amended (with effect on 1 April 2008), on 6 October 2009, by section 398(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 71 list of defined terms group of companies: inserted (with effect on 1 October 2016), on 30 March 2017, by section 207(9) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 71 list of defined terms imputation credit: inserted (with effect on 1 October 2016), on 30 March 2017, by section 207(9) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 71 list of defined terms loss balance: inserted (with effect on 1 October 2016), on 30 March 2017, by section 207(9) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 71 list of defined terms notice: inserted, on 2 June 2016, by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
OB 72 Imputation additional tax on joining wholly-owned group
Liability
(1)
An ICA company to which subsection (2) applies may be liable for imputation additional tax under—
(a)
subsection (3) as the company’s first liability under this section:
(b)
subsection (5) as the company’s second liability under this section.
Liable company
(2)
The company is 1 to which all of the following apply:
(a)
the company stops being part of a group of companies (the former group) and becomes part of a wholly-owned group of companies (the new group); and
(b)
if the former group is a wholly-owned group of companies, the loss balance carried forward from the previous tax year for companies in the former group is more than $1,000,000; and
(c)
if the former group is not a wholly-owned group of companies, company A has transferred imputation credits under section OB 83 to a company in the former group.
First liability
(3)
The company is liable for imputation additional tax if, at a particular time,—
(a)
a debit balance exists in the company’s imputation credit account; and
(b)
an imputation debit arose when the company was part of the former group; and
(c)
the imputation additional tax liability of the company has not been paid under section OB 71 by the company or another company in the former group.
Amount of liability
(4)
The amount of the imputation additional tax liability under subsection (3) is equal to the amount of the imputation debit at the time the company becomes part of the new group.
Second liability
(5)
The company is liable for an amount of imputation additional tax, equal to the excess entitlement determined under subsection (6), if a group of people hold common voting interests in the new group that exceed by 67% or more the common voting interests in the former group that are held by the same people immediately before the company joins the new group.
Possible liability under section OB 72B
(5B)
The company is liable for an amount of imputation additional tax given by section OB 72B(8) if the requirements of that provision are met.
Excess entitlement
(6)
The company’s excess entitlement at a particular time is 1 of the following amounts:
(a)
zero, if the credit balance of the company’s imputation credit account at the time is equal to or more than the amount (the total refundable amount) that is the total of the following:
(i)
the amount in the tax pooling account provided by or for the benefit of the company that is more than the company’s liability to pay income tax or provisional tax at the time:
(ii)
the amount of the refund to which the company is entitled under sections RM 2, RM 4, and RM 5 (which relate to refunds of excess tax), other than an amount affected by a restriction under section OB 72B(5); or
(b)
the total refundable amount, if there is no credit balance in the company’s imputation credit account at the time; or
(c)
the excess of the total refundable amount over the credit balance in the company’s imputation credit account at the time, if paragraph (b) does not apply.
Due date
(7)
The imputation additional tax must be paid to the Commissioner no later than the 20th day of the month following the month in which the company stops being part of the former group.
Joint liability
(8)
The company and all companies in the new group are jointly liable for the imputation additional tax. A payment of imputation additional tax does not satisfy any other liability of the company or the new group.
Payment by excess tax
(9)
For a liability under subsections (3) and (5), the company or another company in the new group may choose to satisfy the liability by applying an excess tax payment in discharging it.
Defined in this Act: amount, Commissioner, company, excess tax payment, group of companies, ICA company, imputation additional tax, imputation credit, imputation credit account, imputation debit, income tax liability, income year, loss balance, pay, provisional tax, tax loss, tax pooling account, tax year, wholly-owned group of companies
Compare: 2004 No 35 s ME 9C
Section OB 72(1)(a): amended (with effect on 1 March 2010), on 7 September 2010, by section 101(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72(2): replaced (with effect on 1 October 2016), on 30 March 2017, by section 208(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72(5): substituted (with effect on 1 March 2010), on 7 September 2010, by section 101(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72(5B) heading: inserted (with effect on 1 March 2010), on 7 September 2010, by section 101(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72(5B): inserted (with effect on 1 March 2010), on 7 September 2010, by section 101(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72(6)(a): substituted (with effect on 1 March 2010), on 7 September 2010, by section 101(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72(6)(a)(ii): amended (with effect on 1 April 2013), on 17 July 2013, by section 81 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section OB 72(6)(b): substituted (with effect on 1 March 2010), on 7 September 2010, by section 101(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72(6)(c): substituted (with effect on 1 March 2010), on 7 September 2010, by section 101(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72 list of defined terms group of companies: inserted (with effect on 1 October 2016), on 30 March 2017, by section 208(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72 list of defined terms imputation credit: inserted (with effect on 1 October 2016), on 30 March 2017, by section 208(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72 list of defined terms loss balance: inserted (with effect on 1 October 2016), on 30 March 2017, by section 208(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 72B Limit on using entitlement to refund after joining wholly-owned group
When this section applies
(1)
This section applies when—
(a)
an ICA company joins a wholly-owned group of companies (the new group) from another group of companies (the former group); and
(ab)
if the former group is not a wholly-owned group of companies, the ICA company has transferred imputation credits under section OB 83 to a company in the former group; and
(b)
the ICA company is not liable for imputation additional tax under section OB 72(5).
Restricted refund amount for company and new group
(2)
Subsections (3) to (8) apply to an amount (the restricted refund amount) for the ICA company and the new group that is greater than zero and calculated using the formula—
refund amount − ICA credit balance.
Definition of items in formula
(3)
In the formula,—
(a)
refund amount is the total of the following amounts, determined immediately before the ICA company joins the new group:
(i)
the amount in the tax pooling account provided by or for the benefit of the ICA company that is more than the company’s liability to pay income tax or provisional tax at the time:
(ii)
the amount of the refund to which the ICA company is entitled under sections RM 2, RM 4, and RM 5 (which relate to refunds of excess tax) other than an amount affected by a restriction under subsection (5) for the company and another group:
(b)
ICA credit balance is the credit balance of the ICA company’s imputation credit account immediately before the company joins the new group.
Payment to Commissioner
(4)
If the restricted refund amount is greater than the amount referred to in subsection (3)(a)(ii), the ICA company must pay to the Commissioner an amount equal to the excess and the Commissioner must hold the amount with the balance of the restricted refund amount as if the excess were a refund to which the company were entitled under section RM 2 (Refunds for overpaid tax).
Use of restricted refund amount: former group wholly-owned
(5)
If the former group is a wholly-owned group of companies, the Commissioner must hold the restricted refund amount for the ICA company and the new group subject to the restriction that the amount—
(a)
may be refunded for an imputation credit only if the ICA company satisfies the Commissioner that the credit—
(i)
arises from taxation paid by the ICA company or by a company that is in the same wholly-owned group as the ICA company and was in the former group immediately before the ICA company joined the new group:
(ii)
is attached to a dividend received in relation to a shareholding by the ICA company or by a company that is in the same wholly-owned group as the ICA company and was in the former group immediately before the ICA company joined the new group and had the shareholding then; and
(b)
may be used to satisfy a tax liability referred to in subsection (5C).
Use of restricted refund amount: former group not wholly-owned
(5B)
If the former group is not a wholly-owned group of companies, the Commissioner must hold the restricted refund amount for the ICA company and the new group subject to the restriction that the amount—
(a)
may be refunded for an imputation credit if—
(i)
the credit was transferred to the ICA company by a company that was in the former group when the ICA company was in the former group:
(ii)
the credit arises from taxation paid by the ICA company or by a company that is in the new group and was in the former group immediately before the ICA company joined the new group:
(iii)
the credit is attached to a dividend received in relation to a shareholding by the ICA company or by a company that is in the new group and was in the former group immediately before the ICA company joined the new group; and
(b)
may be used to satisfy a tax liability referred to in subsection (5C).
Tax liability in subsection (5) or (5B)
(5C)
A tax liability referred to in subsection (5) or (5B) is a tax liability of—
(a)
the ICA company:
(b)
a company (the member) that is in the new group with the ICA company, if the ICA company satisfies the Commissioner that the member was in the former group immediately before the ICA company joined the new group.
Restriction additional to other requirements
(6)
The restriction imposed by subsection (5) or (5B) on the use of a restricted refund amount is in addition to the requirements under other provisions of the Act for a refund or the satisfaction of a tax liability from an amount to which the ICA company is entitled under sections RM 2, RM 4, and RM 5.
Reducing restricted refund amount
(7)
The restricted refund amount for the ICA company and a group is reduced by the amount of—
(a)
a refund permitted under subsection (5)(a) or (5B)(a) relating to the restricted refund amount:
(b)
a satisfaction of a tax liability permitted by subsection (5)(b) or (5B)(b) relating to the restricted refund amount:
(c)
a payment of imputation additional tax under subsection (8) relating to the restricted refund amount:
(d)
a payment of imputation additional tax under section OB 71(4) relating to the restricted refund amount.
Liability for imputation additional tax
(8)
The ICA company is liable for an amount of imputation additional tax equal to the restricted refund amount for the company and a wholly-owned group of companies (the old group) determined immediately after a change in the holding of voting interests in the ICA company if, immediately after the change, a group of people hold common voting interests in the ICA company that exceed, by 67% or more, the common voting interests—
(a)
in the group of companies to which the company belonged immediately before the company joined the old group; and
(b)
that were held by the same people immediately before the company joined the old group.
Defined in this Act: Commissioner, common voting interest, company, dividend, ICA company, imputation additional tax, imputation credit, income tax, provisional tax, tax pooling account, wholly-owned group of companies
Section OB 72B: inserted (with effect on 1 March 2010), on 7 September 2010, by section 102 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72B(1)(a): amended (with effect on 1 October 2016), on 30 March 2017, by section 209(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(1)(ab): inserted (with effect on 1 October 2016), on 30 March 2017, by section 209(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(3)(a)(ii): amended (with effect on 1 April 2013), on 17 July 2013, by section 82(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section OB 72B(5) heading: replaced (with effect on 1 October 2016), on 30 March 2017, by section 209(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(5): amended (with effect on 1 October 2016), on 30 March 2017, by section 209(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(5)(b): replaced (with effect on 1 October 2016), on 30 March 2017, by section 209(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(5B) heading: inserted (with effect on 1 October 2016), on 30 March 2017, by section 209(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(5B): inserted (with effect on 1 October 2016), on 30 March 2017, by section 209(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(5C) heading: inserted (with effect on 1 October 2016), on 30 March 2017, by section 209(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(5C): inserted (with effect on 1 October 2016), on 30 March 2017, by section 209(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(6): amended (with effect on 1 October 2016), on 30 March 2017, by section 209(7) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(6): amended (with effect on 1 April 2013), on 17 July 2013, by section 82(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section OB 72B(7)(a): amended (with effect on 1 October 2016), on 30 March 2017, by section 209(8)(a) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(7)(b): amended (with effect on 1 October 2016), on 30 March 2017, by section 209(8)(b) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OB 72B(8)(a): amended (with effect on 1 October 2016), on 30 March 2017, by section 209(9) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Distributions of statutory producer boards and co-operative companies
OB 73 Statutory producer boards attaching imputation credits to cash distributions
Election
(1)
On meeting the requirements of subsection (2), a statutory producer board that is an ICA company may choose, for an income year, to attach an imputation credit to a cash distribution paid to a member of the producer board.
Requirements
(2)
The producer board may make an election under subsection (1) if—
(a)
the distribution is made to all persons who were members of the board at a time in the income year; and
(b)
the board proposes to pay the distribution based on 1 of the factors set out in subsection (3); and
(c)
the board would, in the absence of this section, have a deduction for some or all of the distribution, whether as an association rebate under subpart HE (Mutual associations) or under some other provision of this Act.
Methods
(3)
The amount of the distribution must be based on 1 of the following methods of determination, as applicable, for an income year:
(a)
all payments for a member’s produce transactions during the income year as a proportion of total payments for all members’ produce transactions during the income year; or
(b)
all levies payable by a member for the income year as a proportion of total levies payable by members for the income year; or
(c)
another method of determination approved by the Commissioner.
Total credits attached
(4)
The total amount of imputation credit attached to the distribution is calculated using the formula—
total net dividend × tax rate ÷ (1 − tax rate).
Definition of items in formula
(5)
In the formula in subsection (4),—
(a)
total net dividend is the total amount of the distribution excluding the amount of imputation credit:
(b)
tax rate is the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) for the income year.
Member’s credits
(6)
The amount of a member’s share of an imputation credit attached under subsection (4) is calculated using the formula—
(member’s distribution ÷ total distribution) × total imputation credit attached.
Definition of items in formula
(7)
In the formula in subsection (6),—
(a)
member’s distribution is the amount of the member’s share of the distribution excluding the amount of imputation credit:
(b)
total distribution is the amount of the total distribution paid excluding the amount of imputation credit:
(c)
total imputation credit attached is total amount of imputation credit attached to the distribution calculated under subsection (4).
When producer board chooses not to have deduction
(8)
If a producer board chooses to treat a distribution as a dividend, it is denied a deduction for the amount of the distribution under section DV 18 (Statutory producer boards and co-operative companies).
Relationship with section OZ 15
(9)
Section OZ 15 (Attaching imputation credits and notional distributions: modifying amounts) may apply to modify subsection (4).
Defined in this Act: amount, association rebate, Commissioner, deduction, dividend, ICA company, imputation credit, income tax, income year, levy, member, pay, produce transactions, statutory producer board
Compare: 2004 No 35 ss ME 30, ME 31
Section OB 73(5)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 73(9) heading: added, on 1 April 2008, by section 500 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 73(9): added, on 1 April 2008, by section 500 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 73 list of defined terms basic rate: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
OB 74 Statutory producer boards attaching imputation credits to notional distributions
Election
(1)
A statutory producer board that is an ICA company may choose, for an income year, to attach an imputation credit to a notional distribution, as a result of which a member derives a dividend of an amount calculated under section OB 75(2). Subsections (2) and (8) override this subsection.
All members
(2)
A statutory producer board may make an election under subsection (1) only if the distribution is made to all persons who were members of the producer board at a time in the income year.
Methods
(3)
The producer board may determine that the amount of an imputation credit attached to a notional distribution is based on—
(a)
produce transactions, and calculated under subsection (5) for each member; or
(b)
members’ levies, and calculated under subsection (7) for each member; or
(c)
a combination of paragraphs (a) and (b); or
(d)
some other method of determination approved by the Commissioner.
Produce transactions
(4)
The amount of an imputation credit attached to a member’s distribution that is based on produce transactions is calculated using the formula—
(member’s payment ÷ total payments) × credit attached.
Definition of items in formula
(5)
In the formula in subsection (4),—
(a)
member’s payments is the total amount of all payments to or by a member for the member’s produce transactions during the income year:
(b)
total payments is all payments to or by all members for produce transactions during the income year:
(c)
credit attached is the amount of imputation credit attached to the distribution.
Members’ levies
(6)
An imputation credit attached to a member’s distribution that is based on members’ levies is calculated using the formula—
(member’s levies ÷ total levies) × credit attached.
Definition of items in formula
(7)
In the formula in subsection (6),—
(a)
member’s levies is the total amount of all levies payable by a member to the producer board for the income year:
(b)
total levies is total amount of all levies payable by all members to the producer board for the income year:
(c)
credit attached is the amount of imputation credit attached to the distribution.
Commissioner’s determination
(8)
The Commissioner may apply subsections (4) to (7) to determine the amount of the imputation credit to be treated as attached to a member’s distribution if the Commissioner considers that the producer board’s application of subsections (3) to (7) does not result in a fair and reasonable allocation of an amount of imputation credit to a member having regard to—
(a)
the produce transactions of the producer board; and
(b)
the levies payable to the producer board; and
(c)
any other relevant factor.
Defined in this Act: amount, Commissioner, dividend, ICA company, imputation credit, income year, levy, member, pay, produce transactions, statutory producer board
Compare: 2004 No 35 s ME 32
OB 75 Statutory producer boards’ notional distributions that are dividends
Dividend derived
(1)
A notional distribution to which section OB 74 applies that has an imputation credit attached is a dividend under section CD 13 (Notional distributions of producer boards and co-operative companies) derived by a member.
Calculation of amount
(2)
The amount of the dividend is calculated using the formula—
(credit attached ÷ tax rate) − credit attached.
Definitions of items in formula
(3)
In the formula,—
(a)
credit attached is the amount of imputation credit attached to the member’s distribution:
(b)
tax rate is the basic rate of income tax for companies set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) for the income year.
When derived
(4)
The member derives the dividend on the date the statutory producer board chooses under section OB 74 to make a notional distribution.
Returns and information
(5)
For the purposes of this section, the producer board must—
(a)
include the details of the dividend with the return of income filed for the tax year corresponding to the income year in relation to which the distribution was made; and
(b)
retain relevant information to enable the Commissioner to determine whether a later distribution is not a dividend under section CD 26(3) or CD 33(1) (which relate to capital distributions on liquidation or emigration and payments that correspond to notional distributions).
Relationship with section OZ 15
(6)
Section OZ 15 (Attaching imputation credits and notional distributions: modifying amounts) may apply to modify subsection (2).
Defined in this Act: amount, Commissioner, company, dividend, imputation credit, income tax, income year, member, pay, return of income, statutory producer board, tax year
Compare: 2004 No 35 s ME 33
Section OB 75(3)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 75(6) heading: added, on 1 April 2008, by section 501 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 75(6): added, on 1 April 2008, by section 501 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 75 list of defined terms basic rate: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
OB 76 Statutory producer boards attaching FDP credits
[Repealed]Section OB 76: repealed, on 1 April 2017, by section 210 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 77 When and how statutory producer board makes election
Timing of election
(1)
A statutory producer board may make an election under section OB 73, OB 74, or OB 76 in relation to a distribution either—
(a)
after the income year in relation to which the distribution is made; but
(b)
no later than 6 months after the end of the income year in relation to which the distribution is made.
Notice
(2)
A producer board must notify the Commissioner of an election referred to in subsection (1) no later than the time allowed for the statutory producer board to file a return of income for the tax year corresponding to the income year in relation to which the distribution is made.
Defined in this Act: Commissioner, dividend, income year, notice, notify, return of income, statutory producer board, tax year
Compare: 2004 No 35 s ME 30(3), (4)
Section OB 77 list of defined terms notice: inserted, on 2 June 2016, by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section OB 77 list of defined terms notify: inserted, on 2 June 2016, by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
OB 78 Co-operative companies attaching imputation credits to cash distributions
Election
(1)
On meeting the requirements of subsection (2), a co-operative company that is an ICA company may choose, for an income year, to attach an imputation credit to a cash distribution paid to the company’s shareholders.
Requirements
(2)
A co-operative company may make an election under subsection (1) if—
(a)
the distribution is made to all persons who were shareholders of the company at a time during the income year; and
(b)
the distribution is based on the proportion for the income year in which the payments to or by a shareholder for their produce transactions are of total payments to or by all shareholders for all produce transactions; and
(c)
the company would, in the absence of this section, have a deduction for some or all of the distribution, whether as an association rebate under subpart HE (Mutual associations) or some other provision of this Act; and
(d)
no other election for a cash distribution is made for the income year.
Total credit attached
(3)
The total amount of imputation credit attached to the distribution is calculated using the formula—
total net dividend × tax rate ÷ (1 − tax rate).
Definition of items in formula
(4)
In the formula in subsection (3),—
(a)
total net dividend is the total amount of the distribution excluding the amount of imputation credit:
(b)
tax rate is the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) for the income year.
Shareholder’s credit
(5)
The amount of a shareholder’s share of the imputation credit attached as described in subsection (3) is calculated using the formula—
(shareholder’s distribution ÷ total distribution)
× total imputation credit attached.
Definition of items in formula
(6)
In the formula in subsection (5),—
(a)
shareholder’s distribution is the amount that is the shareholder’s share of the distribution, excluding the amount of imputation credit:
(b)
total distribution is the amount of the total distribution paid, excluding the amount of imputation credit:
(c)
total imputation credit attached is the total amount of imputation credit attached to the distribution calculated under subsection (3).
When co-operative company chooses not to have deduction
(7)
If a co-operative company chooses to treat a distribution as a dividend, it is denied a deduction under section DV 18 (Statutory producer boards and co-operative companies). The company must notify the Commissioner of an election under this subsection under section OB 82(3) for the election to be effective.
Relationship with section OZ 15
(8)
Section OZ 15 (Attaching imputation credits and notional distributions: modifying amounts) may apply to modify subsection (3).
Defined in this Act: amount, association rebate, Commissioner, co-operative company, deduction, dividend, ICA company, imputation credit, income tax, income year, notify, pay, produce transactions, shareholder
Compare: 2004 No 35 ss ME 35, ME 36
Section OB 78(4)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 78(8) heading: added, on 1 April 2008, by section 502 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 78(8): added, on 1 April 2008, by section 502 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 78 list of defined terms basic rate: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OB 78 list of defined terms Maori Authority: repealed (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OB 78B Co-operative companies attaching imputation credits to cash distributions to groups
Election
(1)
On meeting the requirements of subsection (2), a co-operative company that is an ICA company may choose, for an income year, to attach an imputation credit to a cash distribution paid to the members of a group of the company’s shareholders and be denied a deduction for the payment by section DV 18 (Statutory producer boards and co-operative companies).
Requirements
(2)
A co-operative company may make an election under subsection (1) if—
(a)
the company is registered under the Co-operative Companies Act 1996; and
(b)
the distribution is made to all the persons who are members of a group of shareholders at a time during the income year; and
(c)
the company’s constitution permits a distribution to be made to the members of the group; and
(d)
the amount of the distribution to a member of the group is based on the payments for the income year to or by the member for produce transactions as a proportion of the total amount of payments for the income year to or by the members of the group for all produce transactions; and
(e)
the company would, in the absence of this section, have a deduction for some or all of the distribution under subpart HE and section DV 19 (which relate to mutual associations) or another provision of the Act; and
(f)
no other election for a cash distribution is made in the income year; and
(g)
the company notifies the Commissioner of the election as required by section OB 82(3).
Total credit attached
(3)
The total amount of imputation credit attached to the distribution is calculated using the formula—
total net dividend × tax rate ÷ (1 − tax rate).
Definition of items in formula
(4)
In the formula in subsection (3),—
(a)
total net dividend is the total amount of the distribution excluding the amount of imputation credit:
(b)
tax rate is the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) for the income year.
Shareholder’s credit
(5)
The amount of a shareholder’s share of the imputation credit attached as described in subsection (3) is calculated using the formula—
shareholder’s distribution ÷ total distribution × total imputation credit attached.
Definition of items in formula
(6)
In the formula in subsection (5),—
(a)
shareholder’s distribution is the amount that is the shareholder’s share of the distribution, excluding the amount of imputation credit:
(b)
total distribution is the amount of the total distribution paid, excluding the amount of imputation credit:
(c)
total imputation credit attached is the total amount of imputation credit attached to the distribution calculated under subsection (3).
Relationship with section OZ 15
(7)
Section OZ 15 (Attaching imputation credits and notional distributions: modifying amounts) may apply to modify subsection (3).
Defined in this Act: amount, Commissioner, co-operative company, deduction, dividend, ICA company, imputation credit, income tax, income year, notify, pay, produce transactions, shareholder
Section OB 78B: inserted, on 26 June 2019, by section 71 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
OB 79 Co-operative companies attaching imputation credits to notional distributions
Election
(1)
On meeting the requirements of subsection (2), a co-operative company that is an ICA company may choose, for an income year, to attach an imputation credit to a notional distribution, as a result of which a member derives a dividend of an amount calculated under section OB 80.
Requirements
(2)
A co-operative company may make an election under subsection (1) if—
(a)
the distribution is made to all persons who were shareholders of the company at a time during the income year; and
(b)
no other election to pay a notional distribution is made for the income year.
Shareholder’s credits
(3)
The amount of a shareholder’s share of an imputation credit attached to a notional distribution is calculated using the formula—
(produce payments ÷ total payments) × credit attached.
Definition of items in formula
(4)
In the formula,—
(a)
produce payments is the amount of all payments to or by the shareholder for the shareholder’s produce transactions during the income year:
(b)
total payments is the amount of all payments to or by shareholders for produce transactions during the income year:
(c)
credit attached is the amount of imputation credit attached to the distribution.
Defined in this Act: amount, co-operative company, dividend, ICA company, imputation credit, income year, member, pay, produce transactions, shareholder
Compare: 2004 No 35 s ME 37
OB 80 Co-operative companies’ notional distributions that are dividends
Dividends
(1)
A notional distribution referred to in section OB 79 that has an imputation credit attached is a dividend under section CD 13 (Notional distributions of producer boards and co-operative companies) derived by a shareholder of the co-operative company.
Amount
(2)
The amount of a shareholder’s dividend is calculated using the formula—
(credit attached ÷ tax rate) − credit attached.
Definition of items in formula
(3)
In the formula,—
(a)
credit attached is the amount of imputation credit attached to the shareholder’s distribution:
(b)
tax rate is the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) for the income year.
When derived
(4)
The shareholder derives the dividend on the date the co-operative company chooses under section OB 79 to make a notional distribution.
Relationship with section OZ 15
(5)
Section OZ 15 (Attaching imputation credits and notional distributions: modifying amounts) may apply to modify subsection (2).
Defined in this Act: amount, co-operative company, dividend, imputation credit, income tax, income year, shareholder
Compare: 2004 No 35 s ME 38
Section OB 80(2) formula: substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 114(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 80(3)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 80(5) heading: added, on 1 April 2008, by section 503 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 80(5): added, on 1 April 2008, by section 503 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 80 list of defined terms basic rate: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
OB 81 Co-operative companies attaching FDP credits
[Repealed]Section OB 81: repealed, on 1 April 2017, by section 211 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 82 When and how co-operative company makes election
One a year
(1)
A co-operative company may make an election under section OB 78, OB 78B, or OB 79 in relation to a distribution for—
(a)
only 1 cash distribution during the income year:
(b)
only 1 notional distribution during the income year.
Timing
(2)
A co-operative company may make an election referred to in subsection (1)—
(a)
after the income year in relation to which the distribution is made; but
(b)
no later than 6 months after the end of the income year in relation to which the distribution is made.
Notice
(3)
A co-operative company must notify the Commissioner of an election referred to in subsection (1)(a) or (b) no later than the time allowed for the company to file a return of income for the tax year corresponding to the income year in relation to which the distribution is made.
Defined in this Act: Commissioner, co-operative company, income year, notice, notify, return of income, tax year
Compare: 2004 No 35 s ME 35
Section OB 82(1): amended, on 26 June 2019, by section 72(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section OB 82(3): amended, on 26 June 2019, by section 72(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section OB 82 list of defined terms notice: inserted, on 2 June 2016, by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Election by group company for transfer of imputation credits with transfer of tax loss
Heading: inserted (with effect on 1 October 2016 and applying for the 2017–18 and later income years), on 30 March 2017, by section 213(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 83 Group companies transferring imputation credits with transfer of tax loss
Election
(1)
When a company that is an ICA company (the loss company) makes a tax loss available under section IC 5 (Company B using company A’s tax loss) to another ICA company (the profit company) for a tax year, the loss company may choose that the loss company or another company meeting the requirements of subsection (5) be able to transfer, when or after the tax loss is made available, imputation credits to the profit company.
No election if companies in wholly-owned group
(2)
Subsection (1) does not apply if the loss company and profit company are members of the same wholly-owned group of companies.
Amount of imputation credits subject to election
(3)
The amount of imputation credits for which the loss company makes the election in subsection (1) is calculated using the formula—
(loss offsets + subvention payments) × tax rate.
Definition of items in formula
(4)
In the formula,—
(a)
loss offsets is the amount of tax loss that is subject to the election under section IC 5(2)(a) made by the loss company in favour of the profit company:
(b)
subvention payments is the amount of the payments referred to in section IC 5(2)(b) made by the profit company to the loss company in relation to the tax loss:
(c)
tax rate is the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) for the tax year.
Transfers of imputation credits
(5)
A company that is an ICA company may transfer imputation credits to the profit company under the election in subsection (1) if—
(a)
the company is the loss company or has an ownership interest in the profit company of 66% or more; and
(b)
the company is a member of a group of companies that includes the loss company and the profit company; and
(c)
there is no wholly-owned group of companies that includes the company and the profit company or the loss company and the profit company; and
(d)
the company, the loss company, and the profit company meet the requirements of section OA 8 (Shareholder continuity requirements for memorandum accounts) for the carrying forward of imputation credits during the period beginning from the end of the income year in which the tax loss arises and ending with the transfer of the imputation credits; and
(e)
the transfer occurs in the period of 4 income years beginning from the end of the income year in which the tax loss arises; and
(f)
notice of the election meeting the requirements of section OB 84 is given to the Commissioner.
Profit company must attach imputation credits to dividend
(6)
When a company transfers imputation credits to the profit company under the election in subsection (1), the profit company must pay a dividend at the time of the transfer and must attach to the dividend the amount of imputation credits transferred to the profit company.
Maximum for total transferred imputation credits
(7)
The total amount of imputation credits transferred under the election in subsection (1) may be less than or equal to the amount given by subsection (3) for the election.
Effect on election if tax loss reduced
(8)
If a loss company makes an election under subsection (1) relating to a tax loss for a tax year that is made available to more than 1 profit company and the amount of tax loss made available to a profit company is reduced under section IC 11 (Reduction of amounts used by companies), the maximum amount of imputation credits able to be transferred to the profit company under the election is reduced by the same proportion as the amount of tax loss made available to the profit company is reduced under section IC 11.
Defined in this Act: Commissioner, company, dividend, group of companies, ICA company, imputation credit, income year, notice, notify, ownership interest, pay, tax loss, tax year, wholly-owned group of companies
Section OB 83: inserted (with effect on 1 October 2016 and applying for the 2017–18 and later income years), on 30 March 2017, by section 213(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OB 84 When and how group company transferring tax loss makes election
Timing
(1)
A company (the loss company) that makes an election under section OB 83(1) relating to a tax loss made available by the company to a member of the same group of companies (the profit company) must make the election when the tax loss is made available and give the notice required by subsection (2).
Notice
(2)
The company must notify the Commissioner of the election by electronic means in a way acceptable to the Commissioner and by the due date under section IC 9 (Date for payment and notice to the Commissioner) for notifying the Commissioner of the election under section IC 5 (Company B using company A’s tax loss) to make the tax loss available.
Information to be included in notice
(3)
A notice required by subsection (2) must include—
(a)
the name and tax file number of the loss company:
(b)
the name and tax file number of the profit company:
(c)
the name and tax file number of the company meeting the requirements of section OB 83(5) that the loss company elects to be a transferor of imputation credits to the profit company:
(d)
the amount of tax loss that is subject to the election under section IC 5(2)(a) made by the loss company in favour of the profit company:
(e)
the amount of the payments referred to in section IC 5(2)(b) made by the profit company to the loss company in relation to the tax loss.
Defined in this Act: Commissioner, company, group of companies, imputation credit, notice, notify, pay, tax file number, tax loss
Section OB 84: inserted (with effect on 1 October 2016 and applying for the 2017–18 and later income years), on 30 March 2017, by section 213(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Tables of credits and debits in memorandum accounts
| How to use these tables |
Each row of a table describes— (a)the credits or debits that may arise in a memorandum account during a tax year; and (b)the credit date or debit date when the credit or debit arises. |
A more detailed description of the credits or debits is contained in the section noted in the last column. |
Table O1: imputation credits
| Row | Imputation credit | Credit date | Further defined |
|---|---|---|---|
| 1 | [Repealed] | ||
| 2 | Provisional tax or income tax paid | day of payment | section OB 4(4)(a) |
| 2B | Transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date of request for transfer | section OB 4(4)(c)(i) |
| 2C | Transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date of request for transfer | section OB 4(4)(c)(ii) |
| 2D | Transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date of transfer under section 173L, 173M, or RC 32(5)(b) | section OB 4(4)(c)(iii) |
| 3 | Deposit into tax pooling account | day of payment | section OB 5 |
| 4 | Transfer from tax pooling account | day of credit | section OB 6 |
| 5 | Payment of further income tax | day of payment | section OB 7 |
| 5B | Payment of qualifying company election tax | day of payment | section OB 7B |
| 5C | [Repealed] | ||
| 6 | Amount of tax withheld for resident passive income | day on which amount is withheld | section OB 8 |
| 7 | Imputation credit attached to dividend derived | day on which dividend is paid | section OB 9 |
| 7B | Attributed PIE income with imputation credit | day of attribution | section OB 9B |
| 7C | Research and development tax credits | day on which return of income for income year is filed | section OB 9C |
| 8 | [Repealed] | ||
| 9 | [Repealed] | ||
| 10 | [Repealed] | ||
| 11 | Transfer of debt balance when company leaves wholly-owned group | day on which company leaves group | section OB 13 |
| 12 | Additional income tax payable when company leaves wholly-owned group | day of payment | section OB 14 |
| 13 | Additional income tax when company joins wholly-owned group | day of payment | section OB 15 |
| 14 | Attribution for personal services if company is not qualifying company | 31 March | section OB 16 |
| 15 | [Repealed] | ||
| 16 | Transfer from ASC account | day of transfer | section OB 18 |
| 17 | Transfer to master fund by company | day of transfer | section OB 19 |
| 17B | Transfer of credit to loss-using group company | day of transfer | section OB 19B |
| 18 | Maori authority credit attached to distribution | day of distribution | section OB 20 |
| 19 | Transfer of balance of Maori authority credit account | day of transfer | section OB 21 |
| 20 | Replacement payment paid under share-lending arrangement | day of payment | section OB 22 |
| 21 | Imputation credit shown in credit transfer notice | day on which notice is given | section OB 23 |
| 21B | Unused imputation credit payment by member before departure | day of credit to ICA of consolidated imputation group for unused imputation credit payment | section OB 23B |
| 22 | Imputation credit on resident’s restricted amalgamation | credit date in account of amalgamating company | section OB 24 |
| 23 | Reversal of debt for tax advantage arrangement | debit date of debit | section OB 25 |
| 24 | Eliminating debit for loss of shareholder continuity cancelling tax pooling account deposit that is refunded or credited | day of refund or credit | section OB 26 |
| 25 | Amount of tax withheld by Australian ICA company for non-resident passive income | day on which amount is withheld | section OB 27 |
| 26 | Amount of tax withheld from schedular payment to Australian ICA company | day on which amount is withheld | section OB 28 |
| 27 | Schedular income tax paid by Australian ICA company | day of payment | section OB 29 |
Table O1 row 1: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 177 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Table O1 row 2: replaced, on 30 March 2022, by section 139 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O1 row 2B: inserted, on 30 March 2022, by section 139 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O1 row 2C: inserted, on 30 March 2022, by section 139 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O1 row 2D: inserted, on 30 March 2022, by section 139 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O1 row 5B: inserted, on 1 April 2008, by section 497 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Table O1 row 5C: repealed (with effect on 1 April 2009), on 30 March 2017, by section 214(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O1 row 7B: substituted (with effect on 1 April 2009), on 6 October 2009, by section 399(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O1 row 7C: inserted, on 1 April 2019, by section 13 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Table O1 row 8: repealed, on 1 April 2017, by section 214(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O1 row 9: repealed (with effect on 30 June 2009), on 6 October 2009, by section 399(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O1 row 10: repealed, on 1 April 2017, by section 214(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O1 row 14: amended (with effect on 1 April 2008), on 6 October 2009, by section 399(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O1 row 15: repealed, on 1 July 2010, by section 399(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O1 row 17B: inserted (with effect on 1 October 2016 and applying for the 2017–18 and later income years), on 30 March 2017, by section 214(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O1 row 21B: inserted (with effect on 1 April 2021), on 31 March 2023, by section 94(1) (and see section 94(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Table O1 row 22: amended, on 1 April 2017, by section 214(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O1 row 22: amended, on 30 March 2017, by section 214(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O2: imputation debits
| Row | Imputation debit | Debit date | Further defined |
|---|---|---|---|
| 1 | [Repealed] | ||
| 2 | Imputation credit attached to dividend paid | day of payment | section OB 30 |
| 3 | Allocation of provisional tax | day of notice of allocation | section OB 31 |
| 4 | Refund of income tax | day of refund | section OB 32(6)(a) |
| 4B | Transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date of request for transfer | section OB 32(6)(b)(i) |
| 4C | Transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date of request for transfer | section OB 32(6)(b)(ii) |
| 4D | Transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date of transfer under section 173L, 173M, or RC 32(5)(b) | section OB 32(6)(b)(iii) |
| 5 | Overpaid income tax applied to meet another tax liability | day of application | section OB 33 |
| 6 | Refund from tax pooling account | day of refund | section OB 34 |
| 7 | Transfer of entitlement to another person in tax pooling account | set out in section OB 35 | section OB 35 |
| 7B | Debit for transfer from tax pooling account for policyholder base liability | 31 March | section OB 35B |
| 8 | [Repealed] | ||
| 9 | Transfer, refund, or use of tax credit | day of transfer, refund, or use | section OB 37 |
| 10 | [Repealed] | ||
| 11 | Overpaid income tax applied to satisfy pre-imputation income tax | day of application | section OZ 3 |
| 12 | [Repealed] | ||
| 13 | Attribution for personal services | 31 March | section OB 40 |
| 14 | Debit for loss of shareholder continuity | time of loss of continuity | section OB 41 |
| 15 | Debit for on-market cancellation | day of acquisition | section OB 42 |
| 16 | Debit for breach of imputation ratio | 31 March | section OB 43 |
| 17 | Transfer for debit balance when company leaves wholly-owned group | day on which company leaves group | section OB 44 |
| 18 | Redemption debit for unit trust or group investment fund for income year | day on which return of income for income year is filed | section OB 45 |
| 19 | Transfer from member fund to master fund | 31 March | section OB 46 |
| 19B | Transfer of credit to loss-using group company | day of transfer | section OB 46B |
| 20 | Debit for policyholder base imputation credits | 31 March | section OB 47 |
| 20B | Recipient of R&D loss tax credits | 31 March | section OB 47B |
| 21 | Credit balance when Maori authority credit account starts | day of becoming Maori authority | section OB 48 |
| 22 | Credit attached to replacement payment paid by company under share-lending arrangement | day of payment | section OB 49 |
| 23 | Credit attached to dividend paid to company shown in returning share transfer | day of payment | section OB 50 |
| 24 | Credit attached to dividend paid to company shown in credit transfer notice | day of payment | section OB 51 |
| 25 | Amount of credit balance transferred to consolidated imputation group’s ICA | credit date for group’s imputation credit | section OB 52 |
| 26 | Imputation debit or policyholder debit in account of amalgamating company | debit date in account of amalgamating company | section OB 53 |
| 27 | Debit for tax advantage arrangement | last day of tax year in which arrangement began | section OB 54 |
| 28 | Retrospective attachment of imputation credit to non-cash dividend | day of payment of dividend | section OB 55 |
| 29 | Final balance when ICA company status ends | day of cessation | section OB 56 |
| 30 | Refund of amount of tax for non-resident passive income to Australian ICA company | day of refund | section OB 57 |
| 31 | Refund of amount of tax for schedular payment to Australian ICA company | day of refund | section OB 58 |
| 32 | Refund of schedular income tax to Australian ICA company | day of refund | section OB 59 |
Table O2 row 1: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 177 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Table O2 row 4: replaced, on 30 March 2022, by section 140 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O2 row 4B: inserted, on 30 March 2022, by section 140 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O2 row 4C: inserted, on 30 March 2022, by section 140 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O2 row 4D: inserted, on 30 March 2022, by section 140 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O2 row 7B: inserted, on 1 July 2010, by section 400(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O2 row 8: repealed, on 1 April 2017, by section 215(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O2 row 9: substituted (with effect on 1 April 2008), on 6 October 2009, by section 400(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O2 row 10: repealed, on 1 April 2017, by section 215(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O2 row 11: amended, on 1 April 2017, by section 215(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O2 row 12: repealed (with effect on 30 June 2009), on 6 October 2009, by section 400(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O2 row 14: amended (with effect on 1 April 2008), on 7 December 2009, by section 88 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Table O2 row 19B: inserted (with effect on 1 October 2016 and applying for the 2017–18 and later income years), on 30 March 2017, by section 215(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O2 row 20: substituted, on 1 July 2010, by section 400(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O2 row 20B: inserted (with effect on 1 April 2015 and applying for income years beginning on or after that date), on 24 February 2016, by section 216(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Table O2 row 25: replaced (with effect on 1 April 2008), on 30 March 2021, by section 125(1) (and see section 125(2) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Table O2 row 26: amended, on 1 April 2017, by section 215(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Subpart OC—Foreign dividend payment accounts (FDPA)
[Repealed]Subpart OC: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Contents
Introductory provisions[Repealed]
Heading: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 1 General rules for companies with FDP accounts
[Repealed]Section OC 1: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 2 FDP accounts
[Repealed]Section OC 2: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 2B General rule for life insurer’s policyholder base
[Repealed]Section OC 2B: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 3 Choosing to become FDPA company
[Repealed]Section OC 3: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 4 When company chooses to stop being FDPA company
[Repealed]Section OC 4: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 5 When company emigrates
[Repealed]Section OC 5: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
FDP credits[Repealed]
Heading: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 6 FDPA payment of FDP
[Repealed]Section OC 6: repealed (with effect on 30 June 2009), on 6 October 2009, by section 405(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 7 FDPA dividend derived with FDP credit
[Repealed]Section OC 7: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 8 FDPA payment of FDP for transfer from CTR account
[Repealed]Section OC 8: repealed (with effect on 30 June 2009), on 6 October 2009, by section 406(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 9 FDPA transfer for net foreign attributed income
[Repealed]Section OC 9: repealed (with effect on 30 June 2009), on 6 October 2009, by section 407(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 10 FDPA payment of FDP for conduit debit balance
[Repealed]Section OC 10: repealed (with effect on 30 June 2009), on 6 October 2009, by section 408(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 11 FDPA credit transfer to company
[Repealed]Section OC 11: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 12 FDPA reversal of tax advantage arrangement
[Repealed]Section OC 12: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
FDP debits[Repealed]
Heading: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 13 FDPA payment of dividend
[Repealed]Section OC 13: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 14 FDPA refund of FDP
[Repealed]Section OC 14: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 15 FDPA overpayment of FDP
[Repealed]Section OC 15: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 16 FDPA refund of tax credit
[Repealed]Section OC 16: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 17 FDPA credit transfer by company
[Repealed]Section OC 17: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 18 FDPA transfer to imputation credit account
[Repealed]Section OC 18: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 19 FDPA transfer to CTR account
[Repealed]Section OC 19: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 97(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OC 20 Debit for policyholder base FDP credits
[Repealed]Section OC 20: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 21 FDPA transfer to group account
[Repealed]Section OC 21: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 22 FDPA breach of FDP ratio
[Repealed]Section OC 22: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 23 FDPA breach of FDP ratio by PCA company
[Repealed]Section OC 23: repealed, on 1 July 2010, by section 411(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 24 FDPA debit for loss of shareholder continuity
[Repealed]Section OC 24: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 25 FDPA tax advantage arrangement
[Repealed]Section OC 25: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 26 FDPA final balance
[Repealed]Section OC 26: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
FDP credits attached to dividends[Repealed]
Heading: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 27 FDP credits attached to dividends
[Repealed]Section OC 27: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 28 FDPA benchmark dividend rules
[Repealed]Section OC 28: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 29 FDP credits and imputation credits attached to dividends
[Repealed]Section OC 29: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Further income tax[Repealed]
Heading: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 30 Payment of further income tax for closing debit balance
[Repealed]Section OC 30: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 31 Payment of further income tax when company no longer New Zealand resident
[Repealed]Section OC 31: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 32 Reduction of further income tax
[Repealed]Section OC 32: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 33 Income tax paid satisfying liability for further income tax
[Repealed]Section OC 33: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OC 34 Further income tax paid satisfying liability for income tax
[Repealed]Section OC 34: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Some definitions[Repealed]
Heading: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 35 Meaning of FDP reference period
[Repealed]Section OC 35: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 36 Meaning of maximum deficit debit
[Repealed]Section OC 36: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 37 Meaning of policyholder FDP ratio
[Repealed]Section OC 37: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 38 Meaning of reduced deficit debit
[Repealed]Section OC 38: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 39 Meaning of shareholder FDP ratio
[Repealed]Section OC 39: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O3: FDP credits[Repealed]
Table O3: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O4: FDP debits[Repealed]
Table O4: repealed, on 1 April 2017, by section 216 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Subpart OD—Conduit tax relief accounts (CTRA)
[Repealed]Subpart OD: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Contents
Introductory provisions[Repealed]
Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 1 General rules for companies with CTR accounts
[Repealed]Section OD 1: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 2 CTR accounts
[Repealed]Section OD 2: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 3 Choosing to become CTR company
[Repealed]Section OD 3: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 4 When company stops being CTR company
[Repealed]Section OD 4: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
CTR credits[Repealed]
Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 5 CTRA tax credit for conduit tax relief
[Repealed]Section OD 5: repealed (with effect on 30 June 2009), on 6 October 2009, by section 424(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OD 6 CTRA transfer from FDP account
[Repealed]Section OD 6: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 7 CTRA dividend derived with CTR credit
[Repealed]Section OD 7: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 8 CTRA reduction of FDP
[Repealed]Section OD 8: repealed (with effect on 30 June 2009), on 6 October 2009, by section 425(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OD 9 CTRA reversal of tax advantage arrangement
[Repealed]Section OD 9: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
CTR debits[Repealed]
Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 10 CTRA payment of dividend
[Repealed]Section OD 10: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 11 CTRA transfer to FDP account
[Repealed]Section OD 11: repealed (with effect on 30 June 2009), on 6 October 2009, by section 426(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OD 12 CTRA transfer to group account
[Repealed]Section OD 12: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 13 CTRA adjustment for conduit tax relief
[Repealed]Section OD 13: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 14 CTRA break in shareholding chain for group company
[Repealed]Section OD 14: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 15 CTRA break in shareholding chain for company
[Repealed]Section OD 15: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 16 CTRA increase in resident shareholding
[Repealed]Section OD 16: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 17 CTRA breach of CTR ratio
[Repealed]Section OD 17: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 18 CTRA tax advantage arrangement
[Repealed]Section OD 18: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 19 CTRA final balance
[Repealed]Section OD 19: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
CTR credits attached to dividends[Repealed]
Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 20 CTR credits attached to dividends
[Repealed]Section OD 20: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 21 CTRA benchmark dividend rules
[Repealed]Section OD 21: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 22 CTR credits and imputation credits attached to dividends
[Repealed]Section OD 22: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Payment of FDP and refunds[Repealed]
Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 23 FDP payable for CTR debits
[Repealed]Section OD 23: repealed (with effect on 30 June 2009), on 6 October 2009, by section 428(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OD 24 FDP payable on resident’s restricted amalgamation
[Repealed]Section OD 24: repealed (with effect on 30 June 2009), on 6 October 2009, by section 429(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OD 25 Refunds on transfers to CTR account
[Repealed]Section OD 25: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Table O5: conduit tax relief credits[Repealed]
Table O5: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Table O6: conduit tax relief debits[Repealed]
Table O6: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Subpart OE—Branch equivalent tax accounts (BETA)
Contents
Introductory provision
OE 1 General rules for persons with branch equivalent tax accounts
BETA company
(1)
[Repealed]BETA person
(2)
A person resident in New Zealand who is not a company may choose to be a BETA person with a branch equivalent tax account.
General rules: BETA company
(3)
[Repealed]General rules: BETA person
(4)
Sections OA 2 and OA 3 (which relate to the treatment of memorandum accounts) apply to a BETA person and their branch equivalent tax account as if references in those sections to a tax year were references to an income year.
Defined in this Act: BETA person, branch equivalent tax account, company, income year, memorandum account, resident in New Zealand, tax year
Compare: 2004 No 35 ss MF 1(1), MF 11(1)
Section OE 1 heading: amended, on 1 July 2012 (applying for income years beginning on or after that date), by section 100(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OE 1(1): repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 100(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OE 1(3): repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 100(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OE 1(4): amended, on 1 July 2012 (applying for income years beginning on or after that date), by section 100(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OE 1 list of defined terms BETA company: repealed, on 1 July 2012, by section 100(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Companies with branch equivalent tax accounts[Repealed]
Heading: repealed, on 1 July 2012, by section 101(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Introductory provisions[Repealed]
Heading: repealed, on 1 July 2012, by section 101(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OE 2 Branch equivalent tax accounts of companies
[Repealed]Section OE 2: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 101(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OE 3 Choosing to become BETA company
[Repealed]Section OE 3: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 101(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OE 4 When company stops being BETA company
[Repealed]Section OE 4: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 101(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OE 5 Treatment of attributed CFC income and FIF income in this subpart
For the purposes of applying this subpart to a person, other than a company, with an attributing interest in a foreign investment fund (FIF),—
(a)
FIF income derived from the person’s interest is treated as attributed CFC income if the FIF income is calculated—
(i)
under the attributable FIF income method:
(ii)
under a method to which section EX 50(6) or EX 58 (which relate to the calculation of FIF income) applies; and
(b)
the FIF is treated as a CFC; and
(c)
the interest in the FIF is treated as an income interest.
Defined in this Act: attributable FIF income method, attributing interest, CFC, company, FIF, FIF income, foreign investment fund, income interest
Section OE 5: replaced, on 1 July 2012 (applying for income years beginning on or after that date), by section 103(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Branch equivalent tax credits[Repealed]
Heading: repealed, on 1 July 2012, by section 105(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OE 6 BETA payment of income tax on foreign income
[Repealed]Section OE 6: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 105(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OE 7 BETA payment of income tax
[Repealed]Section OE 7: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 107(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OE 7(6): amended (with effect on 1 April 2008), on 2 November 2012, by section 134(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section OE 7(7)(b): amended (with effect on 1 April 2008), on 2 November 2012, by section 134(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section OE 7(8): amended (with effect on 1 April 2008), on 2 November 2012, by section 134(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
OE 8 BETA unused amount of debit balance
[Repealed]Section OE 8: repealed (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 116(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OE 9 BETA refund of FDP
[Repealed]Section OE 9: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 109(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OE 10 BETA credit for loss of shareholder continuity
[Repealed]Section OE 10: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 109(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OE 11 BETA final balance
[Repealed]Section OE 11: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 109(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Treatment of debits from conduit relief[Repealed]
Heading: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 109(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OE 11B Company with debit balance, including debits from conduit relief, in some income years
[Repealed]Section OE 11B: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 109(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Branch equivalent tax debits[Repealed]
Heading: repealed (with effect on 30 June 2009), on 6 October 2009, by section 433(1) the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OE 12 BETA payment of FDP
[Repealed]Section OE 12: repealed (with effect on 30 June 2009), on 6 October 2009, by section 433(1) the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OE 13 BETA reduction in FDP
[Repealed]Section OE 13: repealed (with effect on 30 June 2009), on 6 October 2009, by section 433(1) the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OE 14 BETA refund of income tax
[Repealed]Section OE 14: repealed (with effect on 30 June 2009), on 6 October 2009, by section 434(1) the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OE 15 BETA debit for loss of shareholder continuity
[Repealed]Section OE 15: repealed (with effect on 30 June 2009), on 6 October 2009, by section 434(1) the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OE 16 BETA final balance
[Repealed]Section OE 16: repealed (with effect on 30 June 2009), on 6 October 2009, by section 434(1) the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Debit if credit balance at beginning of first affected income year[Repealed]
Heading: repealed (with effect on 30 June 2009), on 7 September 2010, by section 104 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OE 16B Company with credit balance at beginning of first affected income year
[Repealed]Section OE 16B: repealed (with effect on 30 June 2009), on 7 September 2010, by section 104 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Persons with branch equivalent tax accounts
Introductory provisions
OE 17 Person choosing to become BETA person
Election
(1)
A person who is eligible under section OE 1(2) and who chooses to become a BETA person may make the election for an income year—
(a)
at any time during the income year; or
(b)
no later than the day on which the person is required to file a return of income for the income year; or
(c)
by a later date if the Commissioner allows.
Notice
(2)
The person must notify the Commissioner of the election under subsection (1)—
(a)
no later than 21 days after the election; or
(b)
by a later date if the Commissioner allows.
Effect of election
(3)
A BETA person must maintain a branch equivalent tax account from the first day of the income year in which they make the election.
Defined in this Act: BETA person, branch equivalent tax account, Commissioner, income year, notify, return of income
Compare: 2004 No 35 s MF 11(1), (2)
OE 18 When person stops being BETA person
Election
(1)
A BETA person may choose to stop the branch equivalent tax account.
When election made
(2)
A person may make an election under subsection (1) only in an income year that is later than the income year in which the person chose under section OE 1(2) to become a BETA person.
When person’s status ends
(3)
The person ends their status as a BETA person from the first day of the income year after the income year in which the election referred to in subsection (1) is made but only if they file an annual branch equivalent tax account return for the year of election in the time allowed by section 78(3) of the Tax Administration Act 1994.
Defined in this Act: annual branch equivalent tax account return, BETA person, branch equivalent tax account, income year, notice
Compare: 2004 No 35 s MF 13(1), (2)
Section OE 18 list of defined terms notice: inserted, on 2 June 2016, by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Branch equivalent tax credits
OE 19 BETA person’s payment of income tax on foreign income
Credit
(1)
A BETA person has a branch equivalent tax credit for an income year for an amount calculated using the formula—
(tax liability × CFC or taxable income ÷ taxable income) − foreign tax credits.
Definition of items in formula
(2)
In the formula,—
(a)
tax liability is the person’s income tax liability for the income year:
(b)
CFC or taxable income is the lesser of the person’s—
(i)
attributed CFC income derived during the income year; or
(ii)
taxable income for the income year:
(c)
taxable income is the person’s taxable income for the income year:
(d)
foreign tax credits is the foreign tax credits allowed for the income year under sections LK 1 to LK 7 (which relate to tax credits relating to attributed CFC income).
Table reference
(3)
The branch equivalent tax credit in subsection (1) is referred to in table O9: person’s branch equivalent tax credits, row 2 (payment of income tax on foreign income).
Credit date
(4)
The credit date is the day the person files the return of income for the tax year corresponding to the income year.
Defined in this Act: amount, attributed CFC income, BETA person, branch equivalent tax account, branch equivalent tax credit, income tax, income tax liability, income year, return of income, tax credit, tax year, taxable income
Compare: 2004 No 35 ss MF 13(1), (2), MF 14
Section OE 19 list of defined terms foreign tax: repealed, on 30 March 2017, by section 218(a) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OE 19 list of defined terms tax credit: inserted, on 30 March 2017, by section 218(b) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Branch equivalent tax debits
OE 20 BETA person’s payment of income tax
Election
(1)
On meeting the requirements of subsection (4), a BETA person may choose to use some or all of a credit balance in their branch equivalent tax account to satisfy an income tax liability of the person for an income year.
Debit
(2)
The amount used to satisfy the income tax liability is a branch equivalent tax debit in the person’s branch equivalent tax account.
Table reference
(3)
The branch equivalent tax debit in subsection (2) is referred to in table O10: person’s branch equivalent tax debits, row 2 (payment of income tax).
Requirements
(4)
The person may make an election under subsection (1) if—
(a)
they derive a dividend from an income interest in a CFC during the income year; and
(b)
a credit balance exists in their branch equivalent tax account; and
(c)
they have paid the income tax giving rise to a credit included in the credit balance.
Manner of election
(5)
The person makes the election by recording the amount as a debit in the branch equivalent tax account.
Income tax paid
(6)
Once the election is made, the income tax liability is satisfied to the extent to which the liability is no more than the income tax payable on the amount of the dividend derived.
Debit date
(7)
The debit date is the day of election.
Defined in this Act: amount, BETA person, branch equivalent tax account, branch equivalent tax debit, CFC, dividend, income interest, income tax, income tax liability, income year, pay
Compare: 2004 No 35 ss MF 13(3)(a), MF 14
OE 21 BETA person’s refund of income tax
Debit
(1)
A BETA person has a branch equivalent tax debit for an income year for the amount of a refund of income tax attributable to income tax paid for the income year on attributed CFC income derived during the income year.
Table reference
(2)
The branch equivalent tax debit in subsection (1) is referred to in table O10: person’s branch equivalent tax debits, row 3 (refund of income tax).
Debit date
(3)
The debit date is the day the refund is made.
Defined in this Act: amount, attributed CFC income, BETA person, branch equivalent tax debit, income tax, income year, pay
Compare: 2004 No 35 s MF 13(3)(b)
OE 22 BETA person’s final balance
Debit
(1)
A BETA person has a branch equivalent tax debit for a credit balance in the branch equivalent tax account when the person stops being resident in New Zealand.
Table reference
(2)
The branch equivalent tax debit in subsection (1) is referred to in table O10: person’s branch equivalent tax debits, row 4 (final balance).
Debit date
(3)
The debit date is the day the person stops being resident in New Zealand.
Defined in this Act: BETA person, branch equivalent tax account, branch equivalent tax debit, resident in New Zealand
Compare: 2004 No 35 s MF 13(3)(c)
Table O7: branch equivalent tax credits[Repealed]
Table O7: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 110(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Table O8: branch equivalent tax debits[Repealed]
Table O8: repealed (with effect on 30 June 2009), on 6 October 2009, by section 437(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O9: person’s branch equivalent tax credits
| Row | Branch equivalent tax credit | Credit date | Further defined |
|---|---|---|---|
| 1 | [Repealed] | ||
| 2 | Income tax paid on foreign income derived in income year | day on which return of income for income year is filed | section OE 19 |
Table O9 row 1: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 177 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Table O10: person’s branch equivalent tax debits
| Row | Branch equivalent tax debit | Debit date | Further defined |
|---|---|---|---|
| 1 | [Repealed] | ||
| 2 | Credit balance applied to satisfy income tax liability | day of election | section OE 20 |
| 3 | Refund of income tax for attributed CFC income | day of refund | section OE 21 |
| 4 | Credit balance when New Zealand residence ends | day of cessation | section OE 22 |
Table O10 row 1: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 177 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Subpart OF—Available subscribed capital accounts (ASCA)
Contents
Introductory provisions
OF 1 General rules for companies with ASC accounts
ASC account company
(1)
A public unit trust or a group investment fund that derives category A income may choose to become an available subscribed capital (ASC) account company. This section does not apply to a multi-rate PIE.
ASC account
(2)
An ASC account company must maintain an ASC account for a tax year. The account is a record of ASC credits and ASC debits that arise in the account during the tax year.
Credits
(3)
Credits to the account include redemption proceeds that are less than the ASC company’s available subscribed capital calculated under the slice rule.
Debits
(4)
Debits to the account include a transfer of a credit balance to the company’s imputation credit account.
Defined in this Act: ASC account, ASC account company, ASC credit, ASC debit, available subscribed capital, category A income, group investment fund, imputation credit account, multi-rate PIE, public unit trust, slice rule, tax year
Compare: 2004 No 35 ss MJ 1(1), MJ 5(1), MJ 6(1)
Section OF 1(1): amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 438(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OF 1 list of defined terms multi-rate PIE: inserted, on 1 April 2010, by section 438(2)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OF 1 list of defined terms portfolio tax rate entity: repealed, on 1 April 2010, by section 438(2)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OF 2 ASC accounts
The general rules on memorandum accounts set out in sections OA 2 and OA 3 (which relate to the treatment of memorandum accounts) apply to the ASC account of an ASC account company.
Defined in this Act: ASC account, ASC account company, memorandum account
Compare: 2004 No 35 s MJ 3(1)
OF 3 Choosing to become ASC account company
Election
(1)
A company may choose to become an ASC account company if—
(a)
it is a public unit trust or a group investment fund that derives category A income; and
(b)
it has issued shares on terms that their redemption will be subject to section CD 22(4) (Returns of capital: off-market share cancellations).
Notifying Commissioner
(2)
A company that makes an election under subsection (1) must notify the Commissioner of the election no later than the day on which the company is required to file a return of income for the tax year that corresponds to the income year in which the election is made.
Effect of election
(3)
An ASC account company must maintain the ASC account referred to in section OF 1(2) from the day the company chooses to become an ASC account company.
Defined in this Act: ASC account company, category A income, Commissioner, company, group investment fund, income year, notify, public unit trust, return of income, share, tax year
Compare: 2004 No 35 s MJ 1(1)
ASC credits
OF 4 ASCA redemption credit
Credit
(1)
An ASC account company has an ASC credit when the company redeems a share in the company for an amount calculated using the formula—
ASC amount − redemption proceeds.
Definition of items in formula
(2)
In the formula,—
(a)
ASC amount is the amount of the available subscribed capital for the redemption calculated under section CD 22(4) (Returns of capital: off-market share cancellations):
(b)
redemption proceeds is the amount of the proceeds from the redemption calculated under sections CD 4 to CD 6 (which relate to the nature of a dividend).
Positive result
(3)
If the result of the formula in subsection (1) is negative, the amount is treated as zero.
Table reference
(4)
The ASC credit in subsection (1) is referred to in table O11: ASC credits, row 2 (redemption credit).
Credit date
(5)
The credit date is the day the company redeems the share.
Defined in this Act: amount, ASC account, ASC account company, ASC credit, available subscribed capital, share
Compare: 2004 No 35 s MJ 5
ASC debits
OF 5 ASCA transfer to imputation credit account
Election
(1)
An ASC account company may choose that some or all of the credit balance in the company’s ASC account is transferred to the company’s imputation credit account.
Debit and credit
(2)
The amount of the credit balance transferred is—
(a)
an ASC debit for the full amount of the credit balance transferred; and
(b)
an imputation credit under section OB 18 (ICA transfer from ASC account) for the amount calculated under subsection (4).
Table references
(3)
The ASC debit in subsection (2)(a) is referred to in table O12: ASC debits, row 2 (transfer to imputation credit account). The imputation credit in subsection (2)(b) is referred to in table O1: imputation credits, row 16 (transfer from ASC account).
Amount
(4)
The amount of the credit to the imputation credit account is calculated using the formula—
credit balance × maximum imputation ratio.
Definition of items in formula
(5)
In the formula,—
(a)
credit balance is some or all of the credit balance in the company’s ASC account that the ASC account company chooses to use:
(b)
maximum imputation ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios).
Timing of election
(6)
An election under subsection (1) may be made at any time when the company is an imputation credit account (ICA) company.
Manner of election
(7)
A company makes an election under subsection (1) by recording the credit balance transferred as—
(a)
a debit in the company’s ASC account; and
(b)
a credit in the company’s imputation credit account.
Debit date
(8)
The debit date is—
(a)
the day of election; or
(b)
the day before the company stops being an ICA company if the election is made on the occasion of cessation.
Defined in this Act: amount, ASC account, ASC account company, ASC debit, ICA company, imputation credit, imputation credit account, imputation ratio
Compare: 2004 No 35 ss ME 4(1)(da), MJ 6
Table O11: ASC credits
| Row | ASC credit | Credit date | Further defined |
|---|---|---|---|
| 1 | [Repealed] | ||
| 2 | Amount by which ASC is more than proceeds on redemption of shares | day on which shares are redeemed | section OF 4 |
Table O11 row 1: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 177 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Table O12: ASC debits
| Row | ASC debit | Debit date | Further defined |
| 1 | [Repealed] | ||
| 2 | Transfer of credit balance to imputation credit account | set out in section OF 5 | section OF 5 |
Table O12 row 1: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 177 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Subpart OJ—Policyholder credit accounts (PCA)
[Repealed]Subpart OJ: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Contents
Introductory provision[Repealed]
Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 1 General rules for companies and other persons with policyholder credit accounts
[Repealed]Section OJ 1: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Companies with policyholder credit accounts[Repealed]
Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Introductory provision[Repealed]
Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 2 Policyholder credit accounts of companies
[Repealed]Section OJ 2: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Policyholder credits of PCA company[Repealed]
Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 3 PCA transfer from imputation credit account
[Repealed]Section OJ 3: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 4 PCA transfer from FDP account
[Repealed]Section OJ 4: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 5 PCA transfer of life insurance business
[Repealed]Section OJ 5: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 6 PCA credit for maximum deficit in FDP account
[Repealed]Section OJ 6: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 7 PCA credit for reduced deficit in FDP account
[Repealed]Section OJ 7: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Policyholder debits of PCA company[Repealed]
Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 8 PCA payment of tax relating to policyholder base
[Repealed]Section OJ 8: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 9 PCA transfer to imputation credit account
[Repealed]Section OJ 9: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 10 PCA transfer to group account
[Repealed]Section OJ 10: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 11 PCA company’s transfer of life insurance business
[Repealed]Section OJ 11: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Persons with policyholder credit accounts[Repealed]
Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Introductory provisions[Repealed]
Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 12 Choosing to become PCA person
[Repealed]Section OJ 12: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 13 Choosing to stop being PCA person
[Repealed]Section OJ 13: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Policyholder credits of PCA person[Repealed]
Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 14 PCA person’s equivalent credit
[Repealed]Section OJ 14: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 15 PCA person’s credit for transfer of life insurance business
[Repealed]Section OJ 15: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Policyholder debits of PCA person[Repealed]
Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 16 PCA person’s payment of tax relating to policyholder base
[Repealed]Section OJ 16: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 17 PCA person’s equivalent debit
[Repealed]Section OJ 17: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 18 PCA person’s debit for transfer of life insurance business
[Repealed]Section OJ 18: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O13: policyholder credits[Repealed]
Table O13: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O14: policyholder debits[Repealed]
Table O14: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O15: person’s policyholder credits[Repealed]
Table O15: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O16: person’s policyholder debits[Repealed]
Table O16: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Subpart OK—Maori authority credit accounts (MACA)
Contents
Introductory provision
OK 1 General rules for Maori authorities with Maori authority credit accounts
Accounts
(1)
A Maori authority must maintain a Maori authority credit account for a tax year. The account is a record of Maori authority credits and Maori authority debits that arise in the account during the tax year. Subsection (2) overrides this subsection.
Exclusion
(2)
Subsection (1) does not apply for a period in which—
(a)
the constitution or rules of the Maori authority prohibit a distribution of any kind to a member; or
(b)
the Maori authority derives only exempt income, disregarding exempt income under section CW 10 (Dividend within New Zealand wholly-owned group).
Credits
(3)
Credits include an amount of income tax paid during a tax year and an imputation credit attached to a dividend derived by the Maori authority.
Debits
(4)
Debits may include a refund of income tax and a Maori authority credit attached to a taxable Maori authority distribution paid by the Maori authority.
General rules
(5)
The general rules on memorandum accounts set out in sections OA 2 and OA 3 (which relate to the treatment of memorandum accounts) apply to Maori authority credit accounts.
Defined in this Act: amount, dividend, exempt income, imputation credit, income tax, Maori authority, Maori authority credit, Maori authority credit account, Maori authority debit, member, memorandum account, pay, tax year, taxable Maori authority distribution
Compare: 2004 No 35 ss MK 1, MK 3
Section OK 1(3): replaced, on 1 April 2017, by section 219(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OK 1 list of defined terms FDP credit: repealed, on 1 April 2017, by section 219(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OK 1 list of defined terms FDPA company: repealed, on 1 April 2017, by section 219(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Maori authority credits
OK 2 MACA payment of tax or transfer to account
Credit
(1)
A Maori authority has a Maori authority credit for a payment of income tax or provisional tax, or for an amount of excess tax transferred under section 173L of the Tax Administration Act 1994. Subsection (3) overrides this subsection.
Table reference
(2)
The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 2 (provisional tax and income tax paid), row 2B (transfer under section 173L of the Tax Administration Act 1994), row 2C (transfer under section 173L of the Tax Administration Act 1994), and row 2D (transfer under section 173L of the Tax Administration Act 1994).
No credit
(3)
No credit under subsection (1) arises for—
(a)
income tax paid for a tax year before the 2004–05 tax year; or
(b)
income tax paid for income derived when the Maori authority was not a Maori authority; or
(c)
income tax paid by a credit under section LE 1 (Tax credits for imputation credits); or
(cb)
income tax paid by crediting a research and development tax credit against income tax liability; or
(cb)
[Repealed](d)
further income tax applied under section OK 23 to pay income tax or provisional tax.
Credit date
(4)
The credit date is—
(a)
for a payment of income tax or provisional tax, the day on which the tax is paid; or
(b)
for an amount of excess tax transferred in a tax year (the transfer year) from another period or tax type of the Maori authority under section 173L of the Tax Administration Act 1994,—
(i)
despite section 173L(2)(a) to (bb) of that Act, the date of the request for the transfer, if that date is in the transfer year; or
(ii)
despite section 173L(2)(a) to (bb) of that Act, the date of the request for the transfer, if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the MACA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the transfer year under section 173L or 173M of that Act or section RC 32(5)(b), and the MACA to which the transfer is made is in credit; or
(iii)
the date of the transfer under section 173L of that Act, if the requirements of neither subparagraph (i) nor subparagraph (ii) are met.
Defined in this Act: further income tax, income, income tax, Maori authority, Maori authority credit, pay, research and development tax credit, provisional tax, tax year
Compare: 2004 No 35 s MK 4(1)(a), (2)(a)
Section OK 2 heading: replaced, on 30 March 2022, by section 141(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 2(1): amended, on 30 March 2022, by section 141(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 2(2): amended, on 30 March 2022, by section 141(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 2(3)(cb): inserted, on 1 April 2019, by section 14(1) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section OK 2(3)(cb): repealed (with effect on 1 April 2009), on 30 March 2017, by section 220 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OK 2(4): replaced, on 30 March 2022, by section 141(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 2 list of defined terms research and development tax credit: inserted, on 1 April 2019, by section 14(2) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
OK 3 MACA transfer of excess tax from other Maori authorities
Credit
(1)
A Maori authority has a Maori authority credit for a transfer of excess tax from another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b) (Wholly-owned groups of companies).
Table reference
(2)
The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 3 (transfer from another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b)), row 3B (transfer from another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b)), and row 3C (transfer from another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b)).
Credit date
(3)
[Repealed](4)
The credit date for a transfer of excess tax in a tax year (the transfer year) from another Maori authority under section 173M of the Tax Administration Act 1994 is—
(a)
despite section 173L(2)(a) to (bb) of that Act, the date of the request for the transfer, if—
(i)
the date of that request is in the transfer year; or
(ii)
the date of that request is in the tax year following the transfer year and, at the end of the transfer year, the credit in the MACA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the tax year under section 173L or 173M of that Act or section RC 32(5)(b), and the MACA to which the transfer is made is in credit; or
(b)
the date of the transfer under section 173M of that Act or section RC 32(5)(b), if the requirements of paragraph (a) are not met.
Defined in this Act: Maori authority, Maori authority credit, pay
Compare: 2004 No 35 s MK 4(1)(b), (2)(a)
Section OK 3 heading: replaced, on 30 March 2022, by section 142(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 3(1): replaced, on 30 March 2022, by section 142(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 3(2): amended, on 30 March 2022, by section 142(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 3(3): repealed, on 30 March 2022, by section 142(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 3(4): inserted, on 30 March 2022, by section 142(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
OK 4 MACA payment of further income tax
Credit
(1)
A Maori authority has a Maori authority credit for a payment of further income tax under section OK 21 or OK 22.
Table reference
(2)
The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 4 (payment of further income tax).
Credit date
(3)
The credit date is the day the further income tax is paid.
Defined in this Act: further income tax, Maori authority, Maori authority credit, pay
Compare: 2004 No 35 s MK 4(1)(c), (2)(a)
OK 4B MACA expenditure on research and development
[Repealed]Section OK 4B: repealed (with effect on 1 April 2009), on 30 March 2017, by section 221 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OK 5 MACA distribution with Maori authority credit
Credit
(1)
A Maori authority has a Maori authority credit for the amount of a Maori authority credit attached to a distribution derived by the Maori authority.
Table reference
(2)
The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 5 (distribution with Maori authority credit).
Credit date
(3)
The credit date is the day the distribution is made.
Defined in this Act: amount, distribution, Maori authority, Maori authority credit
Compare: 2004 No 35 s MK 4(1)(d), (2)(b)
OK 6 MACA dividend derived with imputation credit
Credit
(1)
A Maori authority has a Maori authority credit for the amount of an imputation credit attached to a dividend derived by the Maori authority.
Table reference
(2)
The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 6 (dividend derived with imputation credit).
Credit date
(3)
The credit date is the day the dividend is paid.
Defined in this Act: amount, dividend, imputation credit, Maori authority, Maori authority credit, pay
Compare: 2004 No 35 s MK 4(1)(e), (2)(c)
OK 6B MACA attributed PIE income with imputation credit
Credit
(1)
A Maori authority that is an investor in a multi-rate PIE has a Maori authority credit for the amount of an imputation credit attributed to it under section HM 54 (Use of tax credits other than foreign tax credits by investors).
Table reference
(2)
The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 6B (attributed PIE income with imputation credit).
Credit date
(3)
The credit date is the day the amount is attributed.
Defined in this Act: amount, attributed PIE income, imputation credit, multi-rate PIE
Section OK 6B: inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 117(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OK 6C MACA research and development tax credit
Credit
(1)
A Maori authority has a Maori authority credit for the amount of research and development tax credit it is entitled to.
Table reference
(2)
The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 6C (Research and development tax credits).
Credit date
(3)
The credit date is the date the Maori authority files its return of income for the income year.
Defined in this Act: amount, ICA company, imputation credit, research and development tax credit
Section OK 6C: inserted, on 1 April 2019, by section 15 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
OK 7 MACA dividend derived with FDP credit
[Repealed]Section OK 7: repealed, on 1 April 2017, by section 222 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OK 8 MACA resident withholding tax withheld
Credit
(1)
A Maori authority has a Maori authority credit for the amount of tax for resident passive income treated under section RA 9(1)(b) (Treatment of amounts withheld as received) as derived by the Maori authority.
Table reference
(2)
The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 8 (RWT).
Credit date
(3)
The credit date is the day the amount of tax is withheld.
Defined in this Act: amount of tax, Maori authority, Maori authority credit, resident passive income, RWT
Compare: 2004 No 35 s MK 4(1)(h), (2)(e)
OK 9 MACA reversal of tax advantage arrangement
When this section applies
(1)
This section applies when it is established that a Maori authority credit in a Maori authority’s credit account was incorrectly determined to be the subject of an arrangement to obtain a tax advantage.
Credit
(2)
The Maori authority has a Maori authority credit for an amount that equals the amount of a debit in the Maori authority credit account under section OK 17.
Table references
(3)
The Maori authority credit in subsection (2) is referred to in table O17: Maori authority credits, row 9 (reversal of tax advantage arrangement). The Maori authority debit in subsection (2) is referred to in table O18: Maori authority debits, row 9 (tax advantage arrangement).
Credit date
(4)
The credit date is the same as the debit date for the debit under section OK 17.
Defined in this Act: amount, Maori authority, Maori authority credit, Maori authority credit account, Maori authority debit, tax advantage
Compare: 2004 No 35 s MK 4(1)(g), (2)(d)
Maori authority debits
OK 10 MACA distribution
Debit
(1)
A Maori authority has a Maori authority debit for the amount of a Maori authority credit attached to a distribution made by the Maori authority.
Table reference
(2)
The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 2 (distribution).
Debit date
(3)
The debit date is the day the distribution is made.
Defined in this Act: amount, distribution, Maori authority, Maori authority credit, Maori authority debit
Compare: 2004 No 35 s MK 5(1)(a), (2)(a)
OK 11 MACA transfer of excess tax to other Maori authorities
Debit
(1)
A Maori authority has a Maori authority debit for a transfer of excess tax to another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b) (Wholly-owned groups of companies).
Table reference
(2)
The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 3 (transfer to another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b)), row 3B (transfer to another Maori authority under section 173M of the Tax Administration Act 1994) or section RC 32(5)(b), and row 3C (transfer to another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b)).
Debit date
(3)
The debit date for a transfer of excess tax in a tax year (the transfer year) to another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b) is—
(a)
despite section 173L(2)(a) to (bb) of that Act, the date of the request for the transfer if that date is in the transfer year; or
(b)
despite section 173L(2)(a) to (bb) of that Act, the day on which the request for the transfer is made, if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the MACA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the tax year under section 173L or 173M of that Act or section RC 32(5)(b), and the MACA to which the transfer is made is in credit; or
(c)
the day of the transfer under section 173M of that Act or section RC 32(5)(b), if the requirements of neither paragraph (a) nor paragraph (b) are met.
Defined in this Act: amount, Commissioner, company, Maori authority, Maori authority debit, notify, provisional tax
Compare: 2004 No 35 s MK 5(1)(b), (2)(b)
Section OK 11 heading: replaced, on 30 March 2022, by section 143(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 11(1): replaced, on 30 March 2022, by section 143(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 11(2): amended, on 30 March 2022, by section 143(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 11(3): replaced, on 30 March 2022, by section 143(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
OK 12 MACA refund of income tax or transfer of excess tax to period or tax type
Debit
(1)
A Maori authority has a Maori authority debit for the amount of a refund of income tax paid to the Maori authority or for a transfer of excess tax to another period or tax type of the Maori authority under section 173L of the Tax Administration Act 1994.
No debit
(2)
The amount of a debit under subsection (1) does not include—
(a)
a refund of income tax paid for a tax year before the 2004–05 tax year; or
(b)
a refund of income tax paid to the Maori authority that is no more than the debit under section OK 15; or
(c)
a refund of income tax paid for a period when the Maori authority credit account was not maintained.
Table references
(3)
The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 4 (refund of income tax), row 4B (transfer from MACA under section 173L of the Tax Administration Act 1994), row 4C (transfer from MACA under section 173L of the Tax Administration Act 1994), and row 4D (transfer from MACA under section 173L of the Tax Administration Act 1994). The Maori authority debit in subsection (2)(b) is referred to in table O18: Maori authority debits, row 7 (debit for loss of shareholder continuity).
Part-year Maori authorities
(4)
If a Maori authority maintains a Maori authority credit account for only part of a tax year, the amount of the debit is calculated using the formula—
(account days ÷ 365) × refund.
Definition of items in formula
(5)
In the formula,—
(a)
account days is the number of days in the tax year for which the Maori authority maintains the Maori authority credit account:
(b)
refund is the amount of the refund.
Debit date
(6)
The debit date for—
(a)
a refund of income tax is the day the refund is made; or
(b)
an amount of excess tax transferred in a tax year (the transfer year) to another period or tax type of the Maori authority under section 173L of the Tax Administration Act 1994, is—
(i)
despite section 173L(2)(a) to (bb) of that Act, the date of the request for the transfer, if that date is in the transfer year; or
(ii)
despite section 173L(2)(a) to (bb) of that Act, the date of the request for the transfer, if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the MACA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the tax year under section 173L or 173M of that Act and section RC 32(5)(b), and the MACA to which the transfer is made is in credit; or
(iii)
the date of the transfer under section 173L of that Act, if the requirements of neither subparagraph (i) nor subparagraph (ii) are met.
Relationship with section OK 14B
(7)
This section does not apply to an amount that gives rise to a debit under section OK 14B.
Defined in this Act: amount, income tax, Maori authority, Maori authority credit account, Maori authority debit, pay, tax year
Compare: 2004 No 35 s MK 5(1)(c), (g), (2)(c)
Section OK 12 heading: replaced, on 30 March 2022, by section 144(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 12(1): replaced, on 30 March 2022, by section 144(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 12(3): amended, on 30 March 2022, by section 144(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 12(6): replaced, on 30 March 2022, by section 144(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OK 12(7) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 441(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OK 12(7): added (with effect on 1 April 2008), on 6 October 2009, by section 441(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OK 13 MACA payment of other taxes
Debit
(1)
A Maori authority has a Maori authority debit for an amount of overpaid income tax applied to pay an amount due under the Inland Revenue Acts. Subsection (2) overrides this subsection.
No debit
(2)
The amount of a debit under subsection (1) does not include an amount of overpaid income tax—
(a)
applied to satisfy a liability for income tax or provisional tax; or
(b)
paid for a tax year before the 2004–05 tax year; or
(c)
that relates to income tax paid before a Maori authority debit arises under section OK 15 when the amount is no more than the amount of the debit for loss of shareholder continuity.
Table references
(3)
The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 5 (payment of other taxes). The Maori authority debit in subsection (2)(c) is referred to in table O18: Maori authority debits, row 7 (debit for loss of shareholder continuity).
Debit date
(4)
The debit date is the day the amount is applied.
Relationship with section OK 14B
(5)
This section does not apply to an amount that gives rise to a debit under section OK 14B.
Defined in this Act: amount, income tax, income tax liability, income year, Inland Revenue Acts, Maori authority, Maori authority debit, pay, provisional tax, shareholder, tax year
Compare: 2004 No 35 s MK 5(1)(j), (2)(i)
Section OK 13(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 442(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OK 13(5): added (with effect on 1 April 2008), on 6 October 2009, by section 442(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OK 14 MACA refund of FDP
[Repealed]Section OK 14: repealed, on 1 April 2017, by section 223 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OK 14B MACA refund of tax credit
Debit
(1)
A Maori authority has a Maori authority debit for—
(a)
the amount of a transfer under section LA 6(2)(d) (Remaining refundable credits: PAYE, RWT, and certain other items) to the extent to which the transfer does not lead to a refund of income tax:
(b)
the amount of a refund to the authority under section LA 6(2)(e).
(c)
[Repealed]Exclusion[Repealed]
(2)
[Repealed]Table reference
(3)
The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 6B (refund of tax credit).
Debit date
(4)
The debit date is—
(a)
for a debit referred to in subsection (1)(a), the day the amount is transferred:
(b)
for a debit referred to in subsection (1)(b), the day the amount is refunded.
(c)
[Repealed]Defined in this Act: amount, Inland Revenue Acts, Maori authority, Maori authority debit, pay
Section OK 14B: inserted (with effect on 1 April 2008), on 6 October 2009, by section 443(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OK 14B(1)(c): repealed (with effect on 1 April 2009), on 30 March 2017, by section 224(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OK 14B(2) heading: repealed, on 1 April 2017, pursuant to section 224(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OK 14B(2): repealed, on 1 April 2017, by section 224(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OK 14B(4)(c): repealed (with effect on 1 April 2009), on 30 March 2017, by section 224(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OK 14B list of defined terms FDPA company: repealed, on 1 April 2017, by section 224(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OK 15 MACA debit for loss of shareholder continuity
Debit
(1)
A Maori authority has a Maori authority debit for the amount of a Maori authority credit retained in the Maori authority credit account and unused at the time at which shareholder continuity is lost.
Table reference
(2)
The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 7 (debit for loss of shareholder continuity).
When debit arises
(3)
The debit arises at the time shareholder continuity is lost.
Defined in this Act: amount, company, Maori authority, Maori authority credit, Maori authority credit account, Maori authority debit, shareholder
Compare: 2004 No 35 s MK 5(1)(f), (2)(f)
Section OK 15(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 93(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OK 15(3) heading: amended (with effect on 1 April 2008), on 7 December 2009, by section 93(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OK 15(3): amended (with effect on 1 April 2008), on 7 December 2009, by section 93(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
OK 16 MACA breach of Maori authority credit ratio
Debit
(1)
A Maori authority has a Maori authority debit for a breach in a tax year of the Maori authority credit ratio under section OK 20(3) for an amount calculated using the formula—
(net distributions × Maori authority credit ratio) − credits attached.
Definition of items in formula
(2)
In the formula,—
(a)
net distributions is the total amount of all taxable Maori authority distributions made by the Maori authority during the tax year, excluding the amount of Maori authority credits attached to the distributions:
(b)
Maori authority credit ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios) or, if less, the greatest Maori authority credit ratio of all taxable Maori authority distributions made by the Maori authority during the tax year:
(c)
credits attached is the total amount of all Maori authority credits attached to distributions paid by the Maori authority during the tax year.
Ratio change declaration
(3)
A debit under subsection (1) does not arise if the Maori authority provides a ratio change declaration under section OK 20(5).
Table reference
(4)
The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 8 (breach of Maori authority credit ratio).
Debit date
(5)
The debit date is the last day of the tax year.
Defined in this Act: amount, distribution, Maori authority, Maori authority credit, Maori authority credit account, Maori authority credit ratio, Maori authority debit, tax year, taxable Maori authority distribution
Compare: 2004 No 35 ss MK 5(1)(d), (2)(d), MK 7(5)
OK 17 MACA tax advantage arrangement
Debit
(1)
A Maori authority has a Maori authority debit for the amount of a further debit for a tax advantage arrangement referred to in section GB 43(2) and (3) (Reconstruction of Maori authority credit arrangements to obtain tax advantage).
Table reference
(2)
The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 9 (tax advantage arrangement).
Debit date
(3)
The debit date is the last day of the tax year in which the tax advantage arrangement began.
Defined in this Act: amount, arrangement, Maori authority, Maori authority credit account, Maori authority debit, tax advantage, tax year
Compare: 2004 No 35 s MK 5(1)(h), (2)(g)
OK 18 MACA final balance
Debit
(1)
A Maori authority has a Maori authority debit for a credit balance in the Maori authority credit account when the Maori authority stops being a Maori authority.
Table reference
(2)
The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 10 (final balance).
Debit date
(3)
The debit date is day the Maori authority stops being a Maori authority.
Defined in this Act: Maori authority, Maori authority credit account, Maori authority debit
Compare: 2004 No 35 s MK 5(1)(i), (2)(h)
Maori authority credits attached to distributions
OK 19 Maori authority credits attached to distributions
Attaching Maori authority credits
(1)
When a Maori authority makes a taxable Maori authority distribution, it may attach a Maori authority credit to the distribution.
Maori authority credit ratio
(2)
A distribution referred to in subsection (1) must have a Maori authority credit ratio calculated using the formula—
credit attached ÷ net distribution.
Definition of items in formula
(3)
In the formula,—
(a)
credit attached is the amount of Maori authority credit attached to the distribution:
(b)
net distribution is the amount of distribution made, excluding the amount of Maori authority credit.
Maximum permitted ratio
(4)
A Maori authority credit attached to a distribution must not be more than the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios).
Co-operative companies
(5)
A Maori authority that is also a co-operative company may attach a Maori authority credit to a notional distribution. The provisions of section OB 79 (Co-operative companies attaching imputation credits to notional distributions) apply to the notional distribution as if references in that section to—
(a)
an imputation credit were a reference to a Maori authority credit; and
(b)
an imputation credit account were a reference to a Maori authority credit account.
Retrospective attachment
(6)
A Maori authority may retrospectively attach a Maori authority credit to a taxable Maori authority distribution arising from an adjustment, under section GC 7 or GC 8 (which relate to transfer pricing arrangements), of the amount of a distribution that would have been a non-cash dividend if made by a company.
Application of other provisions
(7)
The provisions of section OB 62 (Retrospective attachment of imputation credits) apply to a distribution referred to in subsection (6) as if a reference in that section to—
(aa)
an ICA company were a reference to the Maori authority; and
(a)
an imputation credit were a reference to a Maori authority credit; and
(b)
an imputation credit account were a reference to a Maori authority credit account.
Defined in this Act: amount, co-operative company, ICA company, imputation credit, imputation credit account, Maori authority, Maori authority credit, Maori authority credit account, Maori authority credit ratio, maximum permitted ratio, non-cash dividend, taxable Maori authority distribution
Compare: 2004 No 35 ss MK 6, MK 7(1)
Section OK 19(6): amended (with effect on 1 April 2008), on 23 March 2020, by section 168(1) (and see section 168(5) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section OK 19(7): amended (with effect on 1 April 2008), on 23 March 2020, by section 168(2) (and see section 168(5) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section OK 19(7)(aa): inserted (with effect on 1 April 2008), on 23 March 2020, by section 168(3) (and see section 168(5) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section OK 19 list of defined terms ICA company: inserted (with effect on 1 April 2008), on 23 March 2020, by section 168(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section OK 19 list of defined terms non-cash dividend: inserted (with effect on 1 April 2008), on 23 March 2020, by section 168(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
OK 20 MACA benchmark distribution rules
When this section applies
(1)
This section applies when a Maori authority pays a taxable Maori authority distribution on more than 1 occasion during a tax year.
Benchmark distribution
(2)
The first distribution of the tax year is the benchmark distribution.
Same Maori authority credit ratio
(3)
The Maori authority credit ratio of a distribution made after the benchmark distribution must be the same as the Maori authority credit ratio of the benchmark distribution.
Debit for breach of Maori authority credit ratio
(4)
A breach of subsection (3) gives rise to a Maori authority debit under section OK 16 (table O18: Maori authority debits, row 8 (breach of Maori authority credit ratio)) for an amount calculated using the formula in section OK 16(1).
Ratio change declaration
(5)
A Maori authority may notify the Commissioner that the distribution is not part of an arrangement to obtain a tax advantage by providing a ratio change declaration stating that the distribution is not part of an arrangement to which sections GB 35 and GB 36 (which relate to imputation arrangements to obtain a tax advantage) apply. The Maori authority must provide the declaration before the distribution is made, or by a later date if the Commissioner allows. For the purposes of this subsection, the distribution must not be part of an arrangement to obtain a tax advantage. This subsection overrides subsection (4).
Defined in this Act: amount, arrangement, benchmark distribution, Commissioner, Maori authority, Maori authority credit ratio, Maori authority debit, notify, pay, tax advantage, tax year, taxable Maori authority distribution
Compare: 2004 No 35 s MK 7(2)–(4)
Further income tax
OK 21 Further income tax for closing debit balance
Liability
(1)
A Maori authority is liable to pay further income tax for the amount of a debit balance in its Maori authority credit account at the end of a tax year.
Due date
(2)
The Maori authority must pay the further income tax to the Commissioner no later than 20 June following the end of the tax year.
Application of other provisions
(3)
When it is appropriate for the purposes of this section, the other sections of this Act and the Tax Administration Act 1994—
(a)
apply to further income tax as if they addressed further income tax and not income tax; and
(b)
apply, modified as necessary, to ensure their application to the further income tax rather than income tax; and
(c)
do not override the imputation rules and section 101 of the Tax Administration Act 1994.
Defined in this Act: amount, Commissioner, further income tax, imputation rules, income tax, Maori authority, Maori authority credit account, pay, tax year
Compare: 2004 No 35 s MK 8(1), (2), (6)
OK 22 Further income tax paid when Maori authority no longer Maori authority
Liability
(1)
A Maori authority is liable to pay further income tax for a debit balance in its Maori authority credit account immediately before the Maori authority stops being a Maori authority.
Due date
(2)
The Maori authority must pay the further income tax to the Commissioner by the day on which the Maori authority stops being a Maori authority.
Paramount section
(3)
A Maori authority that stops being a Maori authority on the last day of a tax year is liable for further income tax under this section and not under section OK 21.
Application of other provisions
(4)
When it is appropriate for the purposes of this section, the other sections of this Act and the Tax Administration Act 1994—
(a)
apply to further income tax as if they addressed further income tax and not income tax; and
(b)
apply, modified as necessary, to ensure their application to the further income tax rather than income tax; and
(c)
do not override the imputation rules and section 101 of the Tax Administration Act 1994.
Defined in this Act: Commissioner, further income tax, imputation rules, income tax, Maori authority, Maori authority credit account, pay, tax year
Compare: 2004 No 35 s MK 8(3), (4), (6)
OK 23 Further income tax paid satisfying liability for income tax
Election
(1)
A Maori authority that is liable for income tax or provisional tax may choose to satisfy the liability through a payment of further income tax.
Requirements
(2)
The liability referred to in subsection (1) must be for an income year corresponding to a tax year in which the Maori authority maintains a Maori authority credit account.
When treated as paid
(3)
The income tax or provisional tax is treated as paid on the day the further income tax is paid to the Commissioner.
Defined in this Act: Commissioner, further income tax, income tax, income year, Maori authority, Maori authority credit account, pay, provisional tax, tax year
Compare: 2004 No 35 s MK 8(5)
OK 24 Income tax paid satisfying liability for further income tax
Election
(1)
A Maori authority that is liable for further income tax may choose to satisfy the liability through a payment of income tax.
Requirements
(2)
The liability referred to in subsection (1) must be for an income year corresponding to a tax year in which the Maori authority maintains a Maori authority credit account.
When treated as paid
(3)
The further income tax is treated as paid on the day the income tax is paid to the Commissioner.
Defined in this Act: Commissioner, further income tax, income tax, income year, Maori authority, Maori authority credit account, pay, tax year
Compare: 2004 No 35 s MK 8(5B)
Table O17: Maori authority credits
| Row | Maori authority credit | Credit date | Further defined |
|---|---|---|---|
| 1 | [Repealed] | ||
| 2 | Provisional tax and income tax paid | day of payment | section OK 2(4)(a) |
| 2B | Transfer to MACA under section 173L of the Tax Administration Act 1994 | date of request for transfer | section OK 2(4)(b)(i) |
| 2C | Transfer to MACA under section 173L of the Tax Administration Act 1994 | date of request for transfer | section OK 2(4)(b)(ii) |
| 2D | Transfer to MACA under section 173L of the Tax Administration Act 1994 | date under section 173L of transfer | section OK 2(4)(b)(iii) |
| 3 | Transfer to MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date of request for transfer | section OK 3(4)(a)(i) |
| 3B | Transfer to MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date of request for transfer | section OK 3(4)(a)(ii) |
| 3C | Transfer to MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date under section 173M or RC 32(5)(b) of transfer | section OK 3(4)(b) |
| 4 | Further income tax paid | day of payment | section OK 4 |
| 4B | [Repealed] | ||
| 5 | Maori authority credit attached to distribution derived | day on which distribution is paid | section OK 5 |
| 6 | Imputation credit attached to dividend derived | day on which dividend is paid | section OK 6 |
| 6B | Attributed PIE income with imputation credit | day of attribution | section OK 6B |
| 6C | Research and development tax credits | day on which return of income for income year is filed | section OK 6C |
| 7 | [Repealed] | ||
| 8 | RWT withheld | day on which amount withheld | section OK 8 |
| 9 | Reversal of debit for tax advantage arrangement | debit date for debit | section OK 9 |
Table O17 row 1: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 177 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Table O17 row 2: replaced, on 30 March 2022, by section 145(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O17 row 2B: inserted, on 30 March 2022, by section 145(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O17 row 2C: inserted, on 30 March 2022, by section 145(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O17 row 2D: inserted, on 30 March 2022, by section 145(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O17 row 3: replaced, on 30 March 2022, by section 145(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O17 row 3B: inserted, on 30 March 2022, by section 145(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O17 row 3C: inserted, on 30 March 2022, by section 145(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O17 row 4B: repealed (with effect on 1 April 2009), on 30 March 2017, by section 225(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O17 row 6B: inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Table O17 row 6C: inserted, on 1 April 2019, by section 16 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Table O17 row 7: repealed, on 1 April 2017, by section 225(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O18: Maori authority debits
| Row | Maori authority debit | Debit date | Further defined |
|---|---|---|---|
| 1 | [Repealed] | ||
| 2 | Maori authority credit attached to distribution paid | day of distribution | section OK 10 |
| 3 | Transfer from MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date of request for transfer | section OK 11(3)(a) |
| 3B | Transfer from MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date of request for transfer | section OK 11(3)(b) |
| 3C | Transfer from MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)(b) | date under section 173M or RC 32(5)(b) of transfer | section OK 11(3)(c) |
| 4 | Refund of income tax | day of refund | section OK 12(6)(a) |
| 4B | Transfer from MACA under section 173L of the Tax Administration Act 1994 | date of request for transfer | section OK 12(6)(b)(i) |
| 4C | Transfer from MACA under section 173L of the Tax Administration Act 1994 | date of request for transfer | section OK 12(6)(b)(ii) |
| 4D | Transfer from MACA under section 173L of the Tax Administration Act 1994 | date under section 173L of transfer | section OK 12(6)(b)(iii) |
| 5 | Overpaid income tax applied to satisfy another taxation liability | day of application | section OK 13 |
| 6 | [Repealed] | ||
| 6B | Transfer, refund, or use of tax credit | day of transfer, refund, or use | section OK 14B |
| 7 | Debit for loss of shareholder continuity for Maori authority that is company | time of loss of continuity | section OK 15 |
| 8 | Debit for breach of Maori authority credit ratio | 31 March | section OK 16 |
| 9 | Debit for tax advantage arrangement | last day of tax year in which arrangement began | section OK 17 |
| 10 | Credit balance when Maori authority credit account stops | day of cessation | section OK 18 |
Table O18 row 1: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 177 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Table O18 row 3: replaced, on 30 March 2022, by section 146(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O18 row 3B: inserted, on 30 March 2022, by section 146(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O18 row 3C: inserted, on 30 March 2022, by section 146(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O18 row 4: replaced, on 30 March 2022, by section 146(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O18 row 4B: inserted, on 30 March 2022, by section 146(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O18 row 4C: inserted, on 30 March 2022, by section 146(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O18 row 4D: inserted, on 30 March 2022, by section 146(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Table O18 row 6: repealed, on 1 April 2017, by section 226 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O18 row 6B: inserted (with effect on 1 April 2008), on 6 October 2009, by section 444(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O18 row 7: amended (with effect on 1 April 2008), on 7 December 2009, by section 94 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Subpart OP—Memorandum accounts of consolidated groups
Contents
Introductory provisions
OP 1 Memorandum accounts of consolidated groups
Single company
(1)
For the purposes of this Part, a consolidated group is treated as if it were a single company, and subpart FM (Consolidated groups of companies) applies to the consolidated group.
Consolidated group accounts
(2)
A consolidated group may be—
(a)
required to maintain a memorandum account for a tax year; or
(b)
entitled to maintain a memorandum account for a tax year.
Separate accounts
(3)
A consolidated group’s memorandum account is separate from the memorandum account of each company in the consolidated group.
General rules
(4)
The general rules on memorandum accounts set out in sections OA 2 and OA 3 (which relate to the treatment of memorandum accounts) apply to a memorandum account of a consolidated group.
Tables
(5)
The credits and debits that arise in a memorandum account are listed in tables set out at the end of this subpart. The tables—
(a)
state the credits and the debits; and
(b)
state the credit dates and debit dates when the credits and debits arise; and
(c)
refer to the section that fully defines them, and provides the credit dates and debit dates for each credit and debit.
Defined in this Act: company, consolidated group, memorandum account, tax year
OP 2 When credits and debits arise only in group accounts
Credits only in group account
(1)
A credit may arise only in the memorandum account of a consolidated group and not in the memorandum account of a group company, unless another provision expressly states otherwise.
Debits only in group account
(2)
A debit may arise only in the memorandum account of a consolidated group and not in the memorandum account of a group company, unless another provision expressly states otherwise.
Particular credits and debits
(3)
The credit referred to in subsection (1) and the debit referred to in subsection (2) are listed in provisions in this subpart.
Company’s obligation overridden
(4)
This section applies despite—
(a)
the obligation that a group company may have under this Part to record a credit or debit; and
(b)
the fact that the credit and debit referred to in this section may otherwise be eligible to give rise to a credit or debit in the group company’s account.
Defined in this Act: company, consolidated group, memorandum account
Consolidated groups and imputation credit accounts
Introductory provisions
OP 3 Changes in consolidated imputation groups
New group company
(1)
A consolidated group that is a consolidated imputation group continues to have the same imputation credit account if the group starts an imputation group with a company that is not part of another consolidated group.
Combining consolidated imputation groups
(2)
The companies that are part of 2 or more consolidated imputation groups that choose to combine to form 1 imputation group must record in the imputation credit account of the new group—
(a)
all credits and debits in the imputation credit accounts of the 2 groups immediately before the election takes effect; and
(b)
all credits and debits that arise for a group company that is part of the new group on and after the election takes effect.
Imputation group becoming consolidated group
(3)
An imputation group continues to use its imputation credit account if the companies that are part of the imputation group choose to convert their status to that of a consolidated group that is a consolidated imputation group.
Opening balances
(4)
The opening balance for a tax year for the imputation credit account of the consolidated imputation group is determined as follows:
(a)
for an imputation group to which subsection (2) applies, the opening balance is equal to the amount that is the sum of the opening balances of each imputation group that is part of the consolidated imputation group:
(b)
for an imputation group to which subsection (3) applies, the opening balance is the amount that is the sum of the opening balances of the imputation groups that chose to convert their status.
Defined in this Act: amount, company, consolidated group, consolidated imputation group, imputation credit account, imputation group, tax year
Compare: 2004 No 35 s ME 10(1A), (1B), (1D)
Section OP 3(4): replaced, on 29 March 2018 (with effect on 1 April 2008), by section 171(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OP 3 list of defined terms amount: inserted, on 29 March 2018 (with effect on 1 April 2008), by section 171(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OP 3 list of defined terms tax year: inserted, on 29 March 2018 (with effect on 1 April 2008), by section 171(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
OP 4 Resident imputation subgroups
Subgroup of trans-Tasman imputation group
(1)
The resident imputation subgroup of a trans-Tasman imputation group must record in its imputation credit account the credits and debits described in subsection (2).
Eligible credits and debits
(2)
The credits and debits referred to in subsection (1) are those that arise in the imputation credit account of the subgroup’s trans-Tasman imputation group in relation to a company that—
(a)
will be part of the subgroup if the credit or debit arises before the subgroup is formed; or
(b)
is part of the subgroup if the credit or debit arises when or after the subgroup is formed.
Opening balances
(3)
The opening balance of the imputation credit account is an amount equal to the sum of the opening balances of each company that is part of the resident imputation subgroup.
Defined in this Act: amount, company, imputation credit account, imputation group, resident imputation subgroup, trans-Tasman imputation group
Compare: 2004 No 35 s ME 10(1C)
Section OP 4(3) heading: inserted, on 29 March 2018 (with effect on 1 April 2008), by section 172(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OP 4(3): inserted, on 29 March 2018 (with effect on 1 April 2008), by section 172(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OP 4 list of defined terms amount: inserted, on 29 March 2018 (with effect on 1 April 2008), by section 172(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
OP 5 When credits and debits arise only in consolidated imputation group accounts
Credits only in group account
(1)
A credit listed in subsection (2) arises only in the imputation credit account of a consolidated imputation group and not in the imputation credit account of a group company.
Particular credits
(2)
The credit referred to in subsection (1) is a credit under the following sections and described in the following rows of table O19: imputation credits of consolidated imputation groups:
(a)
section OP 7, row 2 (payment of tax):
(b)
section OP 8, row 3 (deposit in tax pooling account):
(bb)
section OP 11C, row 6C (Research and development tax credits):
(c)
section OP 12, row 7 (dividend derived with imputation credit).
(d)
[Repealed](e)
[Repealed]Debits only in the group account
(3)
A debit listed in subsection (4) arises only in the imputation credit account of a consolidated imputation group and not in the imputation credit account of a group company.
Particular debits
(4)
The debit referred to in subsection (3) is a debit under the following sections and described in the following rows of table O20: imputation debits of consolidated imputation groups:
(a)
section OP 28, row 2 (payment of dividend):
(b)
section OP 30, row 4 (refund of income tax):
(c)
section OP 32, row 6 (refund from tax pooling account):
(d)
section OP 33, row 7 (transfer within tax pooling account):
(db)
section OP 33B, row 7B (debit for transfer from tax pooling account for policyholder base liability):
(e)
[Repealed](f)
section OP 35, row 9 (refund of tax credit):
(g)
section OP 37, row 11 (group company’s debit):
(h)
section OP 39, row 13 (replacement payment under share-lending arrangement):
(i)
section OP 40, row 14 (returning share transfer):
(j)
section OP 41, row 15 (credit transfer):
(k)
section OP 43, row 17 (breach of imputation ratio):
(l)
section OP 44, row 18 (debit for policyholder base imputation credits).
Defined in this Act: company, consolidated imputation group, imputation credit, imputation credit account, imputation debit
Compare: 2004 No 35 s ME 12(1)
Section OP 5(2)(bb): replaced, on 1 April 2019, by section 17 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section OP 5(2)(c): amended, on 1 April 2017, by section 227(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 5(2)(d): repealed, on 1 April 2017, by section 227(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 5(2)(e): repealed (with effect on 1 April 2009), on 6 October 2009, by section 445(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 5(4)(d): amended (with effect on 1 April 2008), on 7 September 2010, by section 105 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OP 5(4)(db): inserted, on 1 July 2010, by section 445(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 5(4)(e): repealed, on 1 April 2017, by section 227(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 5(4)(k): amended, on 1 July 2010, by section 445(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 5(4)(l): added, on 1 July 2010, by section 445(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 6 Provisions applying to consolidated imputation groups
Single company, tax liabilities
(1)
The provisions listed in subsection (2) apply, modified as necessary, to a consolidated imputation group and to the imputation credit account of the group as if—
(a)
the group were a single company; and
(b)
a reference to a company’s liability for further income tax, late payment penalty, or imputation penalty tax were a reference to a joint and several liability owed by group companies when the tax or penalty becomes payable.
Other provisions
(2)
The provisions are—
(a)
section OB 61 (ICA benchmark dividend rules); and
(ab)
sections OB 65 and OB 66 (which relate to further income tax); and
(ac)
sections OB 71 and OB 72 (which relate to imputation additional tax); and
Consolidation provisions
(3)
Sections FM 4 and FM 5 (which relate to the liabilities of group companies) override subsection (1)(b).
Tax advantage arrangements and determinations
(4)
Sections GB 35 and GB 36 (which relate to tax advantage arrangements), LE 1(5) (Tax credits for imputation credits), OA 2(5) (Memorandum accounts), and sections 90AF and 104B of the Tax Administration Act 1994 apply, modified as necessary, in a case that involves accounts of a consolidated imputation group as if—
(a)
the group were a single company; and
(b)
references to the provisions of this Act or the Tax Administration Act 1994 were references to the equivalent provisions applicable to the equivalent accounts.
Refunds for overpaid amounts
(5)
Sections RM 13 to RM 17, RM 32, and RZ 6 (which relate to limits on refunds) apply, modified as necessary, in relation to income tax paid by a consolidated imputation group as if—
(a)
the group were a single company; and
(b)
a reference to that company when it stops being an ICA company were a reference to the consolidated group when it stops being a consolidated imputation group; and
(c)
references to the provisions of this Act or the Tax Administration Act 1994 were references to the equivalent provisions applicable to the equivalent accounts.
Limits on refunds
(6)
Despite subsection (5), sections RM 13 to RM 17, RM 32, and RZ 6 do not apply to limit a refund payable to a company that is part of a consolidated imputation group in relation to income tax paid individually by the company to the extent to which those sections would not have limited the refund if it had been a refund payable to the group in relation to income tax paid by the group. However, if an amount is refunded and would not have been payable but for this subsection, section RM 15(1) (Changes in credit balances) applies as if the refund were made in relation to income tax paid by the group.
Applying for refunds
(7)
If a company that is part of an imputation group is entitled to a refund under section RM 2, RM 4, or RM 5 (which relate to refunds for overpaid income tax), the company must apply for a refund by notifying the Commissioner. Sections RM 13 to RM 17, RM 32, and RZ 6 apply to the entitlement as if—
(a)
the imputation credit account of the group were the imputation credit account of the company:
(b)
a credit in the imputation credit account for the purposes of those sections were reduced by the amount of a refund to a company that is part of the group.
Defined in this Act: apply, Commissioner, company, consolidated group, consolidated imputation group, further income tax, ICA company, imputation additional tax, imputation credit account, imputation group, imputation penalty tax, income tax, notify, pay, tax
Compare: 2004 No 35 s ME 14(3)
Section OP 6(2)(a): substituted (with effect on 1 April 2008), on 6 October 2009, by section 446(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(2)(ab): inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(2)(ac): inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(4) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(4): added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(5): added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(6) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(6): added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(7) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(7): added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(7): amended (with effect on 1 April 2013), on 17 July 2013, by section 83 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section OP 6 list of defined terms apply: inserted, on 2 June 2016, by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section OP 6 list of defined terms Commissioner: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6 list of defined terms consolidated group: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6 list of defined terms ICA company: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6 list of defined terms imputation additional tax: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6 list of defined terms imputation group: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6 list of defined terms income tax: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6 list of defined terms notify: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6 list of defined terms tax: added (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Imputation credits of consolidated imputation groups
OP 7 Consolidated ICA payment of tax
Credit
(1)
A consolidated imputation group has an imputation credit for a payment of income tax. Subsection (3) overrides this subsection.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 2 (payment of tax).
No credit
(3)
A consolidated imputation group does not have an imputation credit for an amount of—
(a)
income tax paid as a trustee, unless paid on category A income; or
(b)
a transfer from a tax pooling account to a tax account with the Commissioner; or
(c)
income tax paid on income derived by a company that is not an imputation credit account (ICA) company; or
(d)
income tax paid by a life insurer to satisfy its schedular income tax liability for schedular policyholder base income; or
(e)
income tax paid under section LE 1 (Tax credits for imputation credits) by crediting an imputation credit; or
(f)
[Repealed](fb)
[Repealed](g)
income tax paid by crediting an amount under subpart LP (Tax credits for supplementary dividends); or
(gb)
income tax paid by crediting a research and development tax credit against income tax liability; or
(h)
further income tax applied under section OB 65 or OB 66 (which relate to further income tax) to pay income tax or provisional tax; or
(i)
income tax paid by crediting further income tax under section OB 69(3) (Further income tax paid satisfying liability for income tax).
Credit date
(4)
The credit date is the day the tax is paid.
Defined in this Act: amount, category A income, Commissioner, company, consolidated imputation group, further income tax, ICA company, imputation credit, imputation credit account, income, income tax, life insurer, pay, provisional tax, research and development tax credit, schedular income tax liability, schedular policyholder base income, tax account with the Commissioner, tax pooling account, tax year, trustee
Compare: 2004 No 35 s ME 11(1)(a), (2)(a)
Section OP 7(3)(d): substituted, on 1 July 2010, by section 447(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 7(3)(f): repealed, on 1 April 2017, by section 228(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 7(3)(fb): repealed (with effect on 1 April 2009), on 30 March 2017, by section 228(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 7(3)(gb): inserted, on 1 April 2019, by section 18(1) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section OP 7 list of defined terms FDP credit: repealed, on 1 April 2017, by section 228(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 7 list of defined terms policyholder base income tax liability: repealed, on 1 July 2010, by section 447(3)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 7 list of defined terms research and development tax credit: inserted, on 1 April 2019, by section 18(2) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section OP 7 list of defined terms schedular income tax liability: inserted, on 1 July 2010, by section 447(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 7 list of defined terms schedular policyholder base income: inserted, on 1 July 2010, by section 447(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 8 Consolidated ICA deposit in tax pooling account
Credit
(1)
A consolidated imputation group has an imputation credit for an amount provided by it and paid by an intermediary into a tax pooling account.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 3 (deposit in tax pooling account).
Credit date
(3)
The credit date is the day the amount is deposited.
Defined in this Act: amount, consolidated imputation group, imputation credit, intermediary, pay, tax pooling account
Compare: 2004 No 35 s ME 11(1)(aa), (2)(aa)
OP 9 Consolidated ICA transfer from tax pooling account
Credit
(1)
A consolidated imputation group has an imputation credit for an amount representing an entitlement to funds held in a tax pooling account if the intermediary transfers the entitlement from another person to the group.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 4 (transfer from tax pooling account).
Credit date
(3)
The credit date is,—
(a)
for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the group’s tax account with the Commissioner, the credit date under section RP 19 (Transfers from tax pooling accounts) for the amount transferred; or
(ab)
for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the Commissioner to satisfy a liability of the group that is an increased amount of tax under section RP 17B (Tax pooling accounts and their use) other than income tax, the date of the transfer; or
(b)
for an entitlement to funds that are refunded by the intermediary from the tax pooling account to the group, the date of the refund; or
(c)
for an entitlement that is transferred by the intermediary from the group to another person, the date of the transfer.
Defined in this Act: amount, Commissioner, consolidated imputation group, imputation credit, intermediary, tax account with the Commissioner, tax pooling account
Compare: 2004 No 35 s ME 11(1)(ab), (2)(ab)
Section OP 9(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 106(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OP 9(3): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 106(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OP 9(3)(ab): inserted (with effect on 6 October 2009), on 30 March 2017, by section 229 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 10 Consolidated ICA allocation from company with overpaid provisional tax
Credit
(1)
A consolidated imputation group has an imputation credit for an amount allocated under section RC 32 (Wholly-owned groups of companies) by a company that has overpaid its provisional tax.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 5 (allocation from excess company).
Credit date
(3)
The credit date is the day the Commissioner is notified of the allocation.
Defined in this Act: amount, Commissioner, company, consolidated imputation group, imputation credit, notify
Compare: 2004 No 35 s ME 11(1)(b), (2)(b)
OP 11 Consolidated ICA payment of further income tax
Credit
(1)
A consolidated imputation group has an imputation credit for an amount of further income tax paid under section OB 65 or OB 66 (which relate to further income tax).
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 6 (payment of further income tax).
Credit date
(3)
The credit date is the day the further income tax is paid.
Defined in this Act: amount, consolidated imputation group, further income tax, imputation credit, pay
Compare: 2004 No 35 s ME 11(1)(c), (2)(a)
OP 11B Consolidated ICA expenditure on research and development
[Repealed]Section OP 11B: repealed (with effect on 1 April 2009), on 30 March 2017, by section 230 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 11C Consolidated ICA credit for research and development tax credit
Credit
(1)
A consolidated imputation group has an imputation credit for the amount of research and development tax credit that a group company is entitled to.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 6C (Research and development tax credits).
Credit date
(3)
The credit date is the date the group company files its return of income for the income year.
Defined in this Act: amount, company, consolidated imputation group, imputation credit, research and development tax credit
Section OP 11C: inserted, on 1 April 2019, by section 19 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
OP 12 Consolidated ICA dividend derived with imputation credit
Credit
(1)
A consolidated imputation group has an imputation credit for the amount of an imputation credit attached to a dividend derived by a group company that is not a local authority.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 7 (dividend derived with imputation credit).
Credit date
(3)
The credit date is the day the dividend is paid.
Defined in this Act: amount, company, consolidated imputation group, dividend, imputation credit, local authority, pay
Compare: 2004 No 35 s ME 11(1)(d), (2)(c)
Section OP 12(1): amended, on 1 April 2022, by section 147(1) (and see section 147(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OP 12 list of defined terms local authority: inserted, on 1 April 2022, by section 147(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
OP 13 Consolidated ICA dividend derived with FDP credit
[Repealed]Section OP 13: repealed, on 1 April 2017, by section 231 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 14 Consolidated ICA payment of FDP
[Repealed]Section OP 14: repealed (with effect on 30 June 2009), on 6 October 2009, by section 448(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 15 Consolidated ICA replacement payment to company under share-lending arrangement
Credit
(1)
A consolidated imputation group has an imputation credit for the amount of an imputation credit attached under section OB 64 (Replacement payments) or treated as attached under section RE 25 (When amount of tax treated as imputation credit) to a replacement payment paid under a share-lending arrangement to a company that is part of the consolidated imputation group at the date of payment.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 10 (replacement payment under share-lending arrangement).
Credit date
(3)
The credit date is the day the replacement payment is paid.
Defined in this Act: amount, company, consolidated imputation group, imputation credit, pay, replacement payment, share-lending arrangement
Compare: 2004 No 35 s ME 11(1)(eb), (ec), (2)(cb)
OP 16 Consolidated ICA credit transfer to company
Credit
(1)
A consolidated imputation group has an imputation credit for the amount of an imputation credit shown in a credit transfer notice given to a company that is part of the consolidated imputation group when the notice is given.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 11 (credit transfer).
Credit date
(3)
The credit date is the day the notice is given.
Defined in this Act: amount, company, consolidated imputation group, credit transfer notice, imputation credit
Compare: 2004 No 35 s ME 11(1)(ed), (2)(cc)
OP 16B Consolidated ICA credit transfer to departing consolidated imputation group for unused tax payment
Credit
(1)
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.
Table reference
(2)
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).
When credit arises
(3)
The credit date is the day of the credit to the imputation credit account of the parent group for the unused imputation credit payment.
Defined in this Act: amount, Commissioner, company, consolidated imputation group, ICA company, imputation credit, imputation credit account, imputation debit, income tax, pay, provisional tax, tax pooling intermediary
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).
OP 17 Consolidated ICA resident withholding tax withheld
Credit
(1)
A consolidated imputation group has an imputation credit for resident withholding tax (RWT) that is treated under section RA 9(1)(b) (Treatment of amounts withheld as received) as derived by a group company other than as policyholder base income.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 12 (RWT withheld).
Credit date
(3)
The credit date is the day the interest or dividend relating to the resident passive income is paid.
Defined in this Act: company, consolidated imputation group, dividend, imputation credit, interest, pay, policyholder base income, resident passive income, RWT
Compare: 2004 No 35 s ME 11(1)(j), (2)(c)
Section OP 17(1): amended, on 1 July 2010, by section 449(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 17 list of defined terms policyholder base income: inserted, on 1 July 2010, by section 449(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 18 Consolidated ICA transfer from group company’s FDP account
[Repealed]Section OP 18: repealed, on 1 April 2017, by section 232 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 19 Consolidated ICA transfer from group’s FDP account
[Repealed]Section OP 19: repealed, on 1 April 2017, by section 233 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 20 Consolidated ICA transfer from group company’s policyholder credit account
[Repealed]Section OP 20: repealed, on 1 July 2010, by section 450(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 21 Consolidated ICA transfer from group’s policyholder credit account
[Repealed]Section OP 21: repealed, on 1 July 2010, by section 451(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 22 Consolidated ICA transfer from group company’s ICA
When this section applies
(1)
This section applies when—
(a)
the imputation credit account of a consolidated imputation group has an imputation debit described in a row of table O20: imputation debits of consolidated imputation groups; and
(b)
the imputation credit account of a group company has a credit balance; and
(c)
the credit balance referred to in paragraph (b) existed before the debit referred to in paragraph (a) arose in the imputation credit account of the group.
Election
(2)
The nominated company of the consolidated imputation group may choose to transfer some or all of the credit balance in the imputation credit account of the group company to the imputation credit account of the group.
Restrictions
(3)
The following restrictions apply to a transfer under subsection (2):
(a)
the consolidated imputation group and the group company must meet the requirements of section OA 8 (Shareholder continuity requirements for memorandum accounts) for the carrying forward of imputation credits until the end of the day on which the debit referred to in subsection (1)(a) arises in the imputation credit account of the group:
(b)
credits in the imputation credit accounts of the group and all group companies must be used to reduce the debit referred to in subsection (1)(a) in the order in which the credits arose:
(c)
the total amount of the credit balances in the imputation credit accounts of companies in the group referred to in subsection (1)(a) that may be transferred to the imputation credit account of the group is limited to the amount of the imputation debit referred to in that paragraph.
How elections made
(4)
The nominated company makes an election under subsection (2) by recording the amount of the credit balance that it chooses to transfer as—
(a)
a debit in the group company’s imputation credit account; and
(b)
a credit in the group’s imputation credit account.
Credit
(5)
When the nominated company makes an election under subsection (2) for a group company, the consolidated imputation group has an imputation credit for the amount of the credit balance transferred.
Table reference
(6)
The imputation credit in subsection (5) is referred to in table O19: imputation credits of consolidated imputation groups, row 17 (transfer from group company’s ICA).
Credit date
(7)
The credit date is the same as the debit date for the debit referred to in subsection (1)(a).
Defined in this Act: amount, company, consolidated imputation group, imputation credit, imputation credit account, imputation debit, nominated company
Section OP 22: replaced (with effect on 1 April 2008), on 30 March 2021, by section 126(1) (and see section 126(2) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
OP 23 Consolidated ICA elimination of double debit
When this section applies
(1)
This section applies when an imputation debit in a consolidated imputation group’s imputation credit account under section OP 42 has the effect of cancelling an imputation credit under section OP 8.
Credit
(2)
The consolidated imputation group has an imputation credit for an amount that equals the amount of the debit referred to in subsection (1), and—
(a)
another debit arises under section OP 32 for a refund of the deposit on a debit date that is after the debit date for the debit for loss of shareholder continuity; or
(ab)
another debit arises under section OP 33 for a transfer to another person of the entitlement to the amount of the deposit on a debit date after the debit date for the debit for the loss of shareholder continuity; or
(b)
the deposit is taken into account under sections RP 19 and RP 20 (which relate to transfers from tax pooling accounts) in determining the balance of the company’s tax account with the Commissioner after the debit date for the debit for loss of shareholder continuity.
Table references
(3)
The table references are as follows:
(a)
the imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity):
(b)
the imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 3 (deposit in tax pooling account):
(c)
the imputation credit in subsection (2) is referred to in table O19: imputation credits of consolidated imputation groups, row 18 (elimination of double debit):
(d)
the imputation debit in subsection (2)(a) is referred to in table O20: imputation debits of consolidated imputation groups, row 6 (refund from tax pooling account):
(e)
the imputation debit in subsection (2)(ab) is referred to in table O20: imputation debits of consolidated imputation group, row 7 (transfer to another taxpayer of funds in tax pooling account).
Credit date
(4)
The credit date is the day—
(a)
the deposit is refunded; or
(ab)
the entitlement is transferred; or
(b)
a credit arises in the company’s tax account with the Commissioner.
Defined in this Act: amount, Commissioner, company, consolidated imputation group, deposit, imputation credit, imputation credit account, imputation debit, shareholder, tax account with the Commissioner
Compare: 2004 No 35 s ME 11(1A), (2A)
Section OP 23(2): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 234(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 23(2)(a): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 234(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 23(2)(ab): inserted (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 234(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 23(3)(e): inserted (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 234(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 23(4)(ab): inserted (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 234(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 24 Consolidated ICA reversal of tax advantage arrangement
When this section applies
(1)
This section applies when it is established that an imputation credit in a consolidated imputation group’s imputation credit account was incorrectly determined to be the subject of an arrangement to obtain a tax advantage.
Credit
(2)
The consolidated imputation group has an imputation credit for an amount equal to the amount of a debit in the group’s account under section OP 46.
Table references
(3)
The imputation credit in subsection (2) is referred to in table O19: imputation credits of consolidated imputation groups, row 19 (reversal of tax advantage arrangement). The imputation debit in subsection (2) is referred to in table O20: imputation debits of consolidated imputation groups, row 20 (tax advantage arrangement).
Credit date
(4)
The credit date is the same as the debit date for the debit.
Defined in this Act: amount, consolidated imputation group, imputation credit, imputation debit, tax advantage
Compare: 2004 No 35 s ME 11(1)(i), (2)(e)
OP 25 Consolidated ICA non-resident withholding tax withheld
Credit
(1)
A consolidated imputation group that includes an Australian ICA company has an imputation credit for an amount of non-resident passive income derived by the company from which non-resident withholding tax (NRWT) is withheld.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 20 (NRWT paid).
Credit date
(3)
The credit date is the day the amount of tax is withheld.
Defined in this Act: amount, Australian ICA company, consolidated imputation group, imputation credit, non-resident passive income, NRWT, pay
Compare: 2004 No 35 s ME 11(1B)(a), (2B)(a)
OP 26 Consolidated ICA payment of amount of tax for schedular payment
Credit
(1)
A consolidated imputation group that includes an Australian ICA company has an imputation credit for the amount of tax for a schedular payment paid to the company as a non-resident contractor.
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 21 (amount of tax for schedular payment).
Credit date
(3)
The credit date is the day the amount of tax is withheld.
Defined in this Act: amount of tax, Australian ICA company, consolidated imputation group, imputation credit, non-resident contractor, schedular payment
Compare: 2004 No 35 s ME 11(1B)(b), (2B)(b)
OP 27 Consolidated ICA payment of schedular income tax liability
Credit
(1)
A consolidated imputation group that includes an Australian ICA company has an imputation credit for the amount of a payment by the company of schedular income tax liability for income derived under section CR 3 (Income of non-resident general insurer) or CV 16 (Non-resident shippers).
Table reference
(2)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 22 (payment of schedular income tax liability).
Credit date
(3)
The credit date is the day the schedular income tax liability is paid.
Defined in this Act: amount, Australian ICA company, consolidated imputation group, imputation credit, imputation credit account, income, pay, schedular income tax liability
Compare: 2004 No 35 s ME 11(1B)(c), (2B)(c)
Section OP 27 heading: amended (with effect on 1 April 2008), on 24 February 2016, by section 217(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OP 27(1): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 217(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OP 27(1): amended, on 2 November 2012, by section 135 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section OP 27(2): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 217(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OP 27(3): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 217(4) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OP 27 list of defined terms schedular income tax: repealed (with effect on 1 April 2008), on 24 February 2016, by section 217(5)(a) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OP 27 list of defined terms schedular income tax liability: inserted (with effect on 1 April 2008), on 24 February 2016, by section 217(5)(b) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Imputation debits of consolidated imputation groups
OP 28 Consolidated ICA payment of dividend
Debit
(1)
A consolidated imputation group has an imputation debit for an amount that equals the amount of an imputation credit attached to a dividend paid by a group company.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 2 (payment of dividend).
Debit date
(3)
The debit date is the day the dividend is paid.
Arrangement for dividend from another country
(4)
Section GB 38 (When sections GB 35 to GB 37 apply to consolidated groups) may apply to treat an amount as a debit under this section.
Defined in this Act: amount, company, consolidated imputation group, dividend, imputation credit, imputation debit, pay
Compare: 2004 No 35 s ME 12(1)(a), (2)(a)
OP 29 Consolidated ICA allocation of provisional tax
Debit
(1)
A consolidated imputation group has an imputation debit for an amount of provisional tax allocated by the group under section RC 32 (Wholly-owned groups of companies) to an underpaid company.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 3 (allocation of provisional tax).
Debit date
(3)
The debit date is the day the Commissioner is notified of the allocation.
Defined in this Act: amount, Commissioner, company, consolidated imputation group, imputation debit, notify, provisional tax
Compare: 2004 No 35 s ME 12(1)(c), (2)(c)
OP 30 Consolidated ICA refund of income tax
Debit
(1)
A consolidated imputation group has an imputation debit for the amount of a refund of income tax or provisional tax paid to the group. Subsection (2) overrides this subsection.
No debit
(2)
The debit in subsection (1) does not include—
(a)
a refund of income tax paid by a life insurer to satisfy its schedular income tax liability for schedular policyholder base income; or
(b)
a refund of income tax paid before a debit arises under section OP 42 to the extent to which the amount of the refund is less than the amount of the debit; or
(c)
a refund of income tax or provisional tax paid to a local authority.
Table references
(3)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 4 (refund of income tax). The imputation debit in subsection (2)(b) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity).
Debit date
(4)
The debit date is the day the refund is made.
Relationship with section OP 35
(5)
This section does not apply to an amount that gives rise to a debit under section OP 35.
Defined in this Act: amount, consolidated imputation group, imputation debit, income tax, life insurer, local authority, pay, provisional tax, schedular income tax liability, schedular policyholder base income
Compare: 2004 No 35 s ME 12(1)(d), (2)(d)
Section OP 30(2) heading: substituted, on 1 July 2010, by section 452(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 30(2): substituted, on 1 July 2010, by section 452(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 30(2)(b): amended, on 1 April 2022, by section 148(1)(a) (and see section 148(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OP 30(2)(c): inserted, on 1 April 2022, by section 148(1)(b) (and see section 148(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OP 30(3): amended, on 1 July 2010, by section 452(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 30(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 452(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 30(5): added (with effect on 1 April 2008), on 6 October 2009, by section 452(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 30 list of defined terms life insurer: inserted, on 1 July 2010, by section 452(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 30 list of defined terms local authority: inserted, on 1 April 2022, by section 148(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OP 30 list of defined terms schedular income tax liability: added, on 1 July 2010, by section 452(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 30 list of defined terms schedular policyholder base income: added, on 1 July 2010, by section 452(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 31 Consolidated ICA amount applied to pay other taxes
Debit
(1)
A consolidated imputation group has an imputation debit for—
(a)
an amount of overpaid income tax applied to pay an amount due under the Inland Revenue Acts:
(b)
an increased amount of tax as described in section RP 17B(3) (Tax pooling accounts and their use) applied to pay an amount due under the Inland Revenue Acts other than income tax.
No debit
(2)
The debit referred to in subsection (1) does not include overpaid income tax to the extent to which it is—
(a)
applied to satisfy an income tax liability; or
(b)
for an amount paid before an imputation debit arises under section OP 42, no more than the debit for loss of shareholder continuity.
Table references
(3)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 5 (amount applied to pay other taxes). The imputation debit in subsection (2) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity).
Debit date
(4)
The debit date is the day the amount is applied.
Relationship with section OP 35
(5)
This section does not apply to an amount that gives rise to a debit under section OP 35.
Defined in this Act: amount, company, consolidated imputation group, imputation debit, income tax, income tax liability, Inland Revenue Acts, pay, shareholder
Compare: 2004 No 35 s ME 12(1)(l), (2)(k)
Section OP 31(1): replaced, on 30 March 2022, by section 149(1) (and see section 149(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section OP 31(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 453(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 31(5): added (with effect on 1 April 2008), on 6 October 2009, by section 453(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 32 Consolidated ICA refund from tax pooling account
When this section applies
(1)
This section applies for a consolidated imputation group when—
(a)
the group has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under sections OP 8 and OP 9; and
(b)
the intermediary refunds the amount from the tax pooling account to the group.
Debit
(2)
The consolidated imputation group has an imputation debit for the tax year for the amount of the refund.
Table references
(3)
The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 3 (deposit in tax pooling account) or row 4 (transfer from tax pooling account). The imputation debit in subsection (2) is referred to in table O20: imputation debits of consolidated imputation groups, row 6 (refund from tax pooling account).
Debit date
(4)
The debit date for the debit is—
(a)
the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the imputation credit account on that date:
(b)
the day the refund is made to the extent of the remaining amount of the debit that is no more than the credit balance in the imputation credit account on the day of refund:
(c)
the last day of the previous tax year for the remainder of the imputation debit.
Defined in this Act: amount, consolidated imputation group, deposit, imputation credit, imputation credit account, imputation debit, intermediary, pay, tax pooling account, tax year
Compare: 2004 No 35 s ME 12(1)(da), (2)(da)
Section OP 32(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 107(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OP 33 Consolidated ICA transfer within tax pooling account
When this section applies
(1)
This section applies for a consolidated imputation group when—
(a)
the group has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under sections OP 8 and OP 9; and
(b)
the intermediary transfers the entitlement from the group to another person.
Debit
(2)
The consolidated imputation group has an imputation debit for the amount of the transfer.
Table reference
(3)
The imputation debit in subsection (2) is referred to in table O20: imputation debits of consolidated imputation groups, row 7 (transfer to tax pooling account).
Debit date
(4)
The debit date for the debit is—
(a)
the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the imputation credit account on that date:
(b)
the day the transfer is made to the extent of the remaining amount of the debit that is no more than the credit balance in the imputation credit account on the day of transfer:
(c)
the last day of the previous tax year for the remainder of the imputation debit.
Defined in this Act: amount, consolidated imputation group, imputation credit, imputation credit account, imputation debit, tax pooling account, tax year
Compare: 2004 No 35 s ME 12(1)(db), (2)(da)
Section OP 33 heading: substituted (with effect on 1 April 2008), on 7 September 2010, by section 108(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OP 33(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 108(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OP 33(4)(b): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 108(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OP 33B Consolidated ICA debit for transfer from tax pooling account for policyholder base liability
Debit
(1)
A consolidated imputation group has an imputation debit for the amount transferred from a tax pooling account to their tax account with the Commissioner, to the extent to which the amount satisfies its schedular income tax liability for schedular policyholder base income or its income tax liability for a life fund PIE that is a multi-rate PIE.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 7B (debit for transfer from tax pooling account for policyholder base liability).
Debit date
(3)
The debit date is the last day of the tax year.
Defined in this Act: ICA company, imputation credit, imputation debit, life insurer, schedular income tax liability, schedular policyholder base income, tax year
Section OP 33B: inserted, on 1 July 2010, by section 454(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 34 Consolidated ICA refund of FDP
[Repealed]Section OP 34: repealed, on 1 April 2017, by section 235 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 35 Consolidated ICA refund of tax credit
Debit
(1)
A consolidated imputation group has an imputation debit for—
(a)
the amount of a transfer under section LA 6(2)(d) (Remaining refundable credits: PAYE, RWT, and certain other items) to the extent to which the transfer does not lead to a refund of income tax:
(b)
the amount of a refund under section LA 6(2)(e).
(c)
[Repealed]Exclusion[Repealed]
(1B)
[Repealed]Exclusion: refund after debit under section OP 42
(1C)
Despite subsection (1), a consolidated imputation group has an imputation debit for a refundable tax credit arising for a group company in a tax year after a debit arises under section OP 42, reduced by the lesser of—
(a)
the debit under section OP 42:
(b)
the amount by which the refundable tax credit exceeds the total credits to the group’s imputation credit account, for amounts satisfying the group’s income tax liability, during the period from the date of the debit to the date on which the credit balance is to be determined under sections RM 13 and RM 14 (which relate to limits on refunds for ICA companies).
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 9 (refund of tax credit).
Debit date
(3)
The debit date is—
(a)
for a debit referred to in subsection (1)(a), the day the amount is transferred:
(b)
for a debit referred to in subsection (1)(b), the day the amount is refunded.
(c)
[Repealed]Defined in this Act: amount, company, consolidated group, consolidated imputation group, dividend, imputation debit, pay, tax credit
Compare: 2004 No 35 s ME 12(1)(f), (2)(d)
Section OP 35(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 455(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 35(1)(c): repealed (with effect on 1 April 2009), on 30 March 2017, by section 236(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 35(1B) heading: repealed, on 1 April 2017, pursuant to section 236(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 35(1B): repealed, on 1 April 2017, by section 236(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 35(1C) heading: inserted, on 1 April 2018, by section 175(1) (and see section 175(2) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OP 35(1C): inserted, on 1 April 2018, by section 175(1) (and see section 175(2) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section OP 35(3): substituted (with effect on 1 April 2008), on 6 October 2009, by section 455(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 35(3)(c): repealed (with effect on 1 April 2009), on 30 March 2017, by section 236(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 35 list of defined terms FDP: repealed, on 1 April 2017, by section 236(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 35 list of defined terms FDP account: repealed, on 1 April 2017, by section 236(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 35 list of defined terms pay: added (with effect on 1 April 2008), on 6 October 2009, by section 455(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 35 list of defined terms tax credit: added (with effect on 1 April 2008), on 6 October 2009, by section 455(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 36 Consolidated ICA overpayment of FDP
[Repealed]Section OP 36: repealed, on 1 April 2017, by section 237 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 37 Consolidated ICA group company’s debit
Debit
(1)
A consolidated imputation group has an imputation debit for an amount to the extent to which the amount would, in the absence of subsection (3), give rise to—
(a)
an imputation debit described in a row of table O2: imputation debits, in the imputation credit account of a group company; and
(b)
an imputation debit that would create or increase a debit balance in the group company’s imputation credit account.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 11 (group company’s debit).
No debit for group company
(3)
The amount referred to in subsection (1) does not give rise to an imputation debit in the group company’s account although otherwise eligible to be one.
Debit date
(4)
The debit date is the day that the amount would have been debited to the imputation credit account of the group company in the absence of subsection (3).
Defined in this Act: amount, company, consolidated imputation group, imputation credit account, imputation debit
Compare: 2004 No 35 s ME 12(1)(k), (2)(j)
OP 38 Consolidated ICA transfer for net foreign attributed income
[Repealed]Section OP 38: repealed (with effect on 30 June 2009), on 6 October 2009, by section 456(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 39 Consolidated ICA replacement payment by company under share-lending arrangement
Debit
(1)
A consolidated imputation group has an imputation debit for the amount of an imputation credit attached under section OB 64 (Replacement payments) to a replacement payment paid under a share-lending arrangement by a company that is part of the consolidated imputation group at the time of payment.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 13 (replacement payment under share-lending arrangement).
Debit date
(3)
The debit date is the day the replacement payment is paid.
Defined in this Act: amount, company, consolidated imputation group, imputation credit, imputation debit, pay, replacement payment, share-lending arrangement
Compare: 2004 No 35 s ME 12(1)(ab), (2)(ab)
OP 40 Consolidated ICA returning share transfer
Debit
(1)
A consolidated imputation group has an imputation debit for the amount of an imputation credit attached to a dividend paid to a company if—
(a)
at the time of payment, the company is part of the consolidated imputation group; and
(b)
the dividend is paid to the company as a share user, or a person associated with a share user, in a returning share transfer that is not a share-lending arrangement.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 14 (returning share transfer).
Debit date
(3)
The debit date is the day the dividend is paid.
Defined in this Act: amount, associated person, company, consolidated imputation group, dividend, imputation credit, imputation debit, pay, returning share transfer, share-lending arrangement, share user
Compare: 2004 No 35 s ME 12(1)(ac), (2)(ac)
OP 41 Consolidated ICA credit transfer by company
Debit
(1)
A consolidated imputation group has an imputation debit for the amount of an imputation credit attached to a dividend paid to a company if—
(a)
at the time of payment, the company is a part of the consolidated imputation group; and
(b)
the amount is shown in a credit transfer notice given by the company.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 15 (credit transfer).
Debit date
(3)
The debit date is the day the dividend is paid.
Defined in this Act: amount, company, consolidated imputation group, credit transfer notice, dividend, imputation credit, imputation debit, pay
Compare: 2004 No 35 s ME 12(1)(ad), (2)(ac)
OP 41B Consolidated ICA debit for unused tax payment of departing member
Debit
(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—
(a)
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
(b)
the company ceases to be a member of the group after making the unused imputation credit payment; and
(c)
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.
Table reference
(2)
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).
Debit date
(3)
The debit date is the date of the credit to the consolidated imputation group’s imputation credit account for the unused imputation credit payment.
Defined in this Act: amount, Commissioner, company, consolidated imputation group, imputation credit, imputation credit account, imputation debit, income tax, pay, provisional tax, tax pooling intermediary
Section OP 41B: inserted (with effect on 1 April 2021), on 31 March 2023, 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).
OP 41C Consolidated ICA debit for unused tax payment of departing part of group
Debit
(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—
(a)
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
(b)
the part group ceases to be a part of the main group after making the unused imputation credit payment; and
(c)
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.
Table reference
(2)
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).
Debit date
(3)
The debit date is the date of the credit to the consolidated imputation group’s imputation credit account for the unused imputation credit payment.
Defined in this Act: amount, Commissioner, company, consolidated imputation group, imputation credit, imputation credit account, imputation debit, income tax, pay, provisional tax, tax pooling intermediary
Section OP 41C: inserted (with effect on 1 April 2021), on 31 March 2023, 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).
OP 42 Consolidated ICA debit for loss of shareholder continuity
Debit
(1)
A consolidated imputation group has an imputation debit for the amount of an imputation credit retained in the group’s imputation credit account and unused at the time at which shareholder continuity is lost.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity).
When debit arises
(3)
The debit arises at the time shareholder continuity is lost.
Defined in this Act: amount, consolidated imputation group, imputation credit, imputation credit account, imputation debit, shareholder
Compare: 2004 No 35 ss ME 12(1)(h), (2)(g), ME 13(2)
Section OP 42(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 95(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OP 42(3) heading: substituted (with effect on 1 April 2008), on 7 December 2009, by section 95(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OP 42(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 95(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
OP 43 Consolidated ICA breach of imputation ratio
Debit
(1)
A consolidated imputation group has an imputation debit for a tax year for the amount of a debit under section OB 43 (ICA breach of imputation ratio) that would arise in the imputation credit account of a group company in the absence of section OP 5(3).
Table references
(2)
The group’s imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 17 (breach of imputation ratio). The group company’s imputation debit in subsection (1) is referred to in table O2: imputation debits, row 16 (breach of imputation ratio).
Debit date
(3)
The debit date is the last day of the tax year.
Defined in this Act: amount, company, consolidated imputation group, imputation credit account, imputation debit, tax year
Compare: 2004 No 35 s ME 12(1)(e), (2)(e)
OP 44 Consolidated ICA debit for policyholder base imputation credits
Debit
(1)
A consolidated imputation group has an imputation debit for the amount of an imputation credit attached to a dividend derived by a group company, to the extent to which it is—
(a)
derived by a group company that is a life insurer; and
(b)
apportioned to that life insurer’s policyholder base; and
(c)
not affected by a debit under section OP 42.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 18 (debit for policyholder base imputation credits).
Debit date
(3)
The debit date is the last day of the tax year.
Defined in this Act: consolidated imputation group, imputation credit, imputation debit, life insurer, policyholder base, tax year
Section OP 44: substituted, on 1 July 2010, by section 458(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 44(1): replaced (with effect on 1 July 2010), on 27 February 2014, by section 122(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
OP 45 Consolidated ICA redemption debit
Debit
(1)
A consolidated imputation group has an imputation debit for the amount of a redemption debit.
When redemption debit arises
(2)
A redemption debit arises when—
(a)
a group company that is not an Australian ICA company is—
(i)
the manager of a unit trust; or
(ii)
the trustee or manager of a group investment fund; and
(b)
the group company derives a dividend from the redemption or cancellation of—
(i)
a unit issued by the unit trust; or
(ii)
an interest of an investor in the group investment fund; and
(c)
the company has acquired the unit or interest in the ordinary course of its management activities for the unit trust or group investment fund; and
(d)
the unit or interest had been acquired by the company on the same terms as those offered to the investors in the unit trust or group investment fund.
Calculating amount
(3)
The debit is for the greater of the amounts described in subsections (4) and (6) calculated for the income year referred to in subsection (8) in which the group company derives the dividend referred to in subsection (2)(b).
First amount
(4)
The first amount is calculated using the formula—
credits attached − imputation debits.
Definition of items in formula
(5)
In the formula in subsection (4),—
(a)
credits attached is the total amount of all imputation credits attached to dividends derived by the group company in the income year in the circumstances set out in subsection (2):
(b)
imputation debits is the amount of imputation debits in the income year under section OP 42 in the group’s imputation credit account.
Second amount
(6)
The second amount is calculated using the formula—
(total dividends ÷ taxable income) × (tax liability − continuity debits).
Definition of items in formula
(7)
In the formula in subsection (6),—
(a)
total dividends is the total amount of all dividends derived in the circumstances set out in subsection (2), including imputation credits attached to the dividends:
(b)
taxable income is the taxable income of the group company for the tax year corresponding to the income year in which the dividends are derived:
(c)
tax liability is the group company’s income tax liability for the tax year corresponding to the income year in which the dividends are derived:
(d)
continuity debits is the amount of imputation credits attached to the dividends that have been cancelled by an imputation debit under section OP 42.
Table references
(8)
The table references are as follows:
(a)
the imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 19 (redemption debit):
(b)
the imputation debit in subsection (5)(b) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity):
(c)
the imputation debit in subsection (7)(d) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity).
Debit date
(9)
The debit date is the day the company or the group’s nominated company files the return of income for the tax year corresponding to the income year in which the dividend is derived.
Defined in this Act: amount, Australian ICA company, company, consolidated imputation group, dividend, group investment fund, imputation credit, imputation credit account, imputation debit, income tax liability, income year, investor, nominated company, return of income, tax year, taxable income, trustee, unit trust
Compare: 2004 No 35 s ME 41
Section OP 45(5)(a): amended, on 1 April 2017, by section 238(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 45(7)(a): amended, on 1 April 2017, by section 238(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OP 45 list of defined terms FDP credit: repealed, on 1 April 2017, by section 238(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 46 Consolidated ICA tax advantage arrangement
Debit
(1)
A consolidated imputation group has an imputation debit for the amount of a debit for a tax advantage arrangement determined under sections GB 35 and GB 36 (which relate to imputation arrangements to obtain a tax advantage).
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 20 (tax advantage arrangement).
Debit date
(3)
The debit date is the last day of the tax year in which the arrangement began.
Defined in this Act: amount, arrangement, consolidated imputation group, imputation debit, tax advantage, tax year
Compare: 2004 No 35 s ME 12(1)(i), (2)(h)
OP 47 Consolidated ICA final balance
Debit
(1)
A consolidated imputation group has an imputation debit for a credit balance in the imputation credit account when the group stops being a consolidated imputation group.
Table reference
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 21 (final balance).
Debit date
(3)
The debit date is the day before the group stops being a consolidated imputation group.
Defined in this Act: consolidated imputation group, imputation credit account, imputation debit
Compare: 2004 No 35 s ME 12(1)(j), (2)(h)
OP 48 Consolidated ICA refund of NRWT
Debit
(1)
A consolidated imputation group that includes an Australian ICA company has an imputation debit for the amount of a refund of NRWT that gave rise to an imputation credit under section OP 25.
Table references
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 22 (refund of NRWT). The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 20 (NRWT withheld).
Debit date
(3)
The debit date is the day the refund is made.
Defined in this Act: amount, Australian ICA company, consolidated imputation group, imputation credit, imputation debit, NRWT
Compare: 2004 No 35 s ME 12(1A)(a), (2A)
OP 49 Consolidated ICA refund of amount of tax for schedular payment
Debit
(1)
A consolidated imputation group that includes an Australian ICA company has an imputation debit for the amount of a refund of an amount of tax for a schedular payment that gave rise to an imputation credit under section OP 26.
Table references
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 23 (refund of amount of tax for schedular payment). The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 21 (amount of tax for schedular payment).
Debit date
(3)
The debit date is the day the refund is made.
Defined in this Act: amount, amount of tax, Australian ICA company, consolidated imputation group, imputation credit, imputation debit, schedular payment
Compare: 2004 No 35 s ME 12(1A)(b), (2A)
OP 50 Consolidated ICA refund relating to schedular income tax liability
Debit
(1)
A consolidated imputation group that includes an Australian ICA company has an imputation debit for the amount of a refund of a payment relating to a schedular income tax liability that gave rise to an imputation credit under section OP 27.
Table references
(2)
The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 24 (refund relating to schedular income tax liability). The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 22 (payment of schedular income tax liability).
Debit date
(3)
The debit date is the day the refund is made.
Defined in this Act: amount, Australian ICA company, consolidated imputation group, imputation credit, imputation debit, income tax, pay, schedular income tax liability
Compare: 2004 No 35 s ME 12(1A)(c), (2A)
Section OP 50 heading: amended (with effect on 1 April 2008), on 24 February 2016, by section 218(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OP 50(1): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 218(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OP 50(2): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 218(3)(a) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OP 50(2): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 218(3)(b) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OP 50 list of defined terms schedular income tax: repealed (with effect on 1 April 2008), on 24 February 2016, by section 218(4)(a) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section OP 50 list of defined terms schedular income tax liability: inserted (with effect on 1 April 2008), on 24 February 2016, by section 218(4)(b) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Table O19: imputation credits of consolidated imputation groups
| Row | Imputation credit | Credit date | Further defined |
|---|---|---|---|
| 1 | [Repealed] | ||
| 2 | Income tax paid for group tax liability | day of payment | section OP 7 |
| 3 | Group funds paid into tax pooling account | day of payment | section OP 8 |
| 4 | Transfer from tax pooling account | day of credit or refund | section OP 9 |
| 5 | Allocation from excess company | day of notice of allocation | section OP 10 |
| 6 | Further income tax paid | day of payment | section OP 11 |
| 6B | [Repealed] | ||
| 6C | Research and development tax credits | day on which return of income for income year is filed | section OP 11C |
| 7 | Imputation credit attached to dividend derived | day on which dividend is paid | section OP 12 |
| 8 | [Repealed] | ||
| 9 | [Repealed] | ||
| 10 | Replacement payment paid under share-lending arrangement | day of payment | section OP 15 |
| 11 | Imputation credit attached to dividend and shown in credit transfer notice | day on which notice is given | section OP 16 |
| 11B | Unused imputation credit payment by departing consolidated group before departure | day of credit to imputation credit account of parent group for unused imputation credit payment | section OP 16B |
| 12 | RWT withheld | day on which interest is paid | section OP 17 |
| 13 | [Repealed] | ||
| 14 | [Repealed] | ||
| 15 | [Repealed] | ||
| 16 | [Repealed] | ||
| 17 | Amount of credit balance transferred from group company’s ICA | set out in section OP 22 | section OP 22 |
| 18 | Debit for loss of shareholder continuity that cancels credit for tax pooling account deposit that is refunded | day of refund | section OP 23 |
| 19 | Reversal of debit for tax advantage arrangement | debit date for debit | section OP 24 |
| 20 | NRWT on non-resident passive income derived by group company that is Australian ICA company | day on which amount is withheld | section OP 25 |
| 21 | Amount of tax for schedular payment to group company that is also Australian ICA company | day on which amount is withheld | section OP 26 |
| 22 | Schedular income tax liability paid by group company that is Australian ICA company | day of payment | section OP 27 |
Table O19 row 1: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 177 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Table O19 row 6B: repealed (with effect on 1 April 2009), on 30 March 2017, by section 239(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O19 row 6C: inserted, on 1 April 2019, by section 20 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Table O19 row 8: repealed, on 1 April 2017, by section 239(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O19 row 9: repealed (with effect on 30 June 2009), on 6 October 2009, by section 459(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O19 row 11B: inserted (with effect on 1 April 2021), on 31 March 2023, by section 97(1) (and see section 97(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Table O19 row 13: repealed, on 1 April 2017, by section 239(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O19 row 14: repealed, on 1 April 2017, by section 239(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O19 row 15: repealed, on 1 July 2010, by section 459(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O19 row 16: repealed, on 1 July 2010, by section 459(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O19 row 17: amended (with effect on 1 April 2008), on 30 March 2021, by section 127(1) (and see section 127(2) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Table O19 row 20: amended, on 29 March 2018 (with effect on 1 April 2008 and applying for the 2008–09 and later income years), by section 176(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Table O19 row 22: amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 219(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Table O20: imputation debits of consolidated imputation groups
| Row | Imputation debit | Debit date | Further defined |
|---|---|---|---|
| 1 | [Repealed] | ||
| 2 | Imputation credit attached to dividend paid by group company | day of payment | section OP 28 |
| 3 | Provisional tax allocated by group to underpaid company | day of notice of allocation | section OP 29 |
| 4 | Refund of income tax or provisional tax to group | day of refund | section OP 30 |
| 5 | Income tax overpaid that is applied to satisfy amount of tax, other than income tax, due by group company | day of application | section OP 31 |
| 6 | Refund from tax pooling account | set out in section OP 32 | section OP 32 |
| 7 | Transfer to another taxpayer of funds in tax pooling account | set out in section OP 33 | section OP 33 |
| 7B | Debit for transfer from tax pooling account for policyholder base liability | 31 March | section OP 33B |
| 8 | [Repealed] | ||
| 9 | Transfer, refund, or use of tax credit | day of transfer, refund, or use | section OP 35 |
| 10 | [Repealed] | ||
| 11 | Debit that would increase debit balance for group company | set out in section OP 37 | section OP 37 |
| 12 | [Repealed] | ||
| 13 | Credit attached to replacement payment under share-lending arrangement | day of payment | section OP 39 |
| 14 | Credit attached to dividend shown in returning share transfer | day of payment | section OP 40 |
| 15 | Credit attached to dividend and shown in credit transfer notice | day of payment | section OP 41 |
| 15B | Member of consolidated imputation group leaving after making unused imputation credit payment | day of credit to ICA of consolidated imputation group for unused imputation credit payment | section OP 41B |
| 15C | Part of consolidated imputation group leaving after making unused imputation credit payment | day of credit to ICA of consolidated imputation group for unused imputation credit payment | section OP 41C |
| 16 | Debit for loss of shareholder continuity | time of loss of continuity | section OP 42 |
| 17 | Debit for breach of imputation ratio | 31 March | section OP 43 |
| 18 | Debit for policyholder base imputation credits | 31 March | section OP 44 |
| 19 | Redemption debit for unit trust or group investment fund for income year | day on which return of income for income year is filed | section OP 45 |
| 20 | Debit for tax advantage arrangement | last day of tax year in which arrangement began | section OP 46 |
| 21 | Credit balance of group’s imputation credit account when group stops being consolidated imputation group | day of cessation | section OP 47 |
| 22 | Refund of NRWT to group company that is Australian ICA company | day of refund | section OP 48 |
| 23 | Refund of amount of tax for schedular payment to group company that is Australian ICA company | day of refund | section OP 49 |
| 24 | Refund relating to schedular income tax liability of group company that is Australian ICA company | day of refund | section OP 50 |
Table O20 row 1: repealed, on 29 March 2018 (with effect on 1 April 2008), by section 177 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Table O20 row 7B: inserted, on 1 July 2010, by section 460(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O20 row 8: repealed, on 1 April 2017, by section 240(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O20 row 9: substituted (with effect on 1 April 2008), on 6 October 2009, by section 460(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O20 row 10: repealed, on 1 April 2017, by section 240(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O20 row 12: repealed (with effect on 30 June 2009), on 6 October 2009, by section 460(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O20 row 15B: inserted (with effect on 1 April 2021), on 31 March 2023, by section 98(1) (and see section 98(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Table O20 row 15C: inserted (with effect on 1 April 2021), on 31 March 2023, by section 98(1) (and see section 98(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Table O20 row 16: amended (with effect on 1 April 2008), on 7 December 2009, by section 96 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Table O20 row 18: substituted, on 1 July 2010, by section 460(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O20 row 24: amended, on 24 February 2016 (applying for the 2008–09 and later income years), by section 220(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Consolidated groups and FDP accounts[Repealed]
Heading: repealed, on 1 April 2017, by section 241(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Introductory provisions[Repealed]
Heading: repealed, on 1 April 2017, by section 241(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 51 FDP accounts of consolidated FDP groups
[Repealed]Section OP 51: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 52 Choosing to stop being consolidated FDP group
[Repealed]Section OP 52: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 53 When group company emigrates
[Repealed]Section OP 53: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 54 When credits and debits arise only in consolidated FDP group accounts
[Repealed]Section OP 54: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 55 Provisions applying to consolidated FDP groups
[Repealed]Section OP 55: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
FDP credits of consolidated FDP groups[Repealed]
Heading: repealed, on 1 April 2017, by section 241(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 56 Consolidated FDPA payment of FDP
[Repealed]Section OP 56: repealed (with effect on 1 April 2009), on 6 October 2009, by section 462(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 57 Consolidated FDPA payment of further FDP
[Repealed]Section OP 57: repealed (with effect on 1 April 2009), on 6 October 2009, by section 463(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 58 Consolidated FDPA dividend derived with FDP credit
[Repealed]Section OP 58: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 59 Consolidated FDPA group company’s credit
[Repealed]Section OP 59: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 60 Consolidated FDPA credit transfer to company
[Repealed]Section OP 60: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 61 Consolidated FDPA transfer from group’s CTR account
[Repealed]Section OP 61: repealed (with effect on 1 April 2009), on 6 October 2009, by section 464(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 62 Consolidated FDPA transfer for net foreign attributed income
[Repealed]Section OP 62: repealed (with effect on 1 April 2009), on 6 October 2009, by section 465(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 63 Consolidated FDPA reversal of tax advantage arrangement
[Repealed]Section OP 63: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
FDP debits of consolidated FDP groups[Repealed]
Heading: repealed, on 1 April 2017, by section 241(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 64 Consolidated FDPA payment of dividend
[Repealed]Section OP 64: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 65 Consolidated FDPA credit transfer by company
[Repealed]Section OP 65: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 66 Consolidated FDPA refund of FDP
[Repealed]Section OP 66: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 67 Consolidated FDPA overpayment of FDP
[Repealed]Section OP 67: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 68 Consolidated FDPA refund of tax credit
[Repealed]Section OP 68: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 69 Consolidated FDPA transfer to imputation credit account
[Repealed]Section OP 69: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 70 Consolidated FDPA transfer to group’s CTR account
[Repealed]Section OP 70: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 111(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 71 Consolidated FDPA group company’s debit
[Repealed]Section OP 71: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 72 Consolidated FDPA breach of FDP ratio
[Repealed]Section OP 72: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 73 Consolidated FDPA debit for loss of shareholder continuity
[Repealed]Section OP 73: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 74 Consolidated FDPA debit for policyholder base FDP credits
[Repealed]Section OP 74: repealed, on 1 April 2017, by section 241(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 75 Consolidated FDPA breach of FDP ratio by PCA company
[Repealed]Section OP 75: repealed, on 30 March 2017, by section 242 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 76 Consolidated FDPA tax advantage arrangement
[Repealed]Section OP 76: repealed, on 1 April 2017, by section 243 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OP 77 Consolidated FDPA final balance
[Repealed]Section OP 77: repealed, on 1 April 2017, by section 243 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O21: FDP credits of consolidated FDP groups[Repealed]
Table O21: repealed, on 1 April 2017, by section 244 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Table O22: FDP debits of consolidated FDP groups[Repealed]
Table O22: repealed, on 1 April 2017, by section 246 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Consolidated groups and CTR credits[Repealed]
Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 112(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Introductory provisions[Repealed]
Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 112(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 78 CTR accounts of consolidated groups
[Repealed]Section OP 78: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 112(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 79 When credits and debits arise only in CTR group accounts
[Repealed]Section OP 79: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 112(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 80 Provisions applying to consolidated groups with CTR accounts
[Repealed]Section OP 80: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 112(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
CTR credits of consolidated groups[Repealed]
Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 81 Consolidated CTRA tax credit for conduit tax relief
[Repealed]Section OP 81: repealed (with effect on 30 June 2009), on 6 October 2009, by section 472(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 82 Consolidated CTRA reduction of FDP
[Repealed]Section OP 82: repealed (with effect on 30 June 2009), on 6 October 2009, by section 473(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 83 Consolidated CTRA dividend derived with CTR credit
[Repealed]Section OP 83: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 84 Consolidated CTRA group company’s credit
[Repealed]Section OP 84: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 85 Consolidated CTRA transfer from group’s FDP account
[Repealed]Section OP 85: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 86 Consolidated CTRA reversal of tax advantage arrangement
[Repealed]Section OP 86: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
CTR debits of consolidated groups[Repealed]
Heading: repealed, on 27 February 2014, by section 131 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
OP 87 Consolidated CTRA payment of dividend
[Repealed]Section OP 87: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 88 Consolidated CTRA transfer to group’s FDP account
[Repealed]Section OP 88: repealed (with effect on 30 June 2009), on 6 October 2009, by section 474(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 89 Consolidated CTRA adjustment for conduit tax relief
[Repealed]Section OP 89: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 90 Consolidated CTRA group company’s debit
[Repealed]Section OP 90: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 91 Consolidated CTRA increase in resident shareholding
[Repealed]Section OP 91: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 92 Consolidated CTRA breach of CTR ratio
[Repealed]Section OP 92: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 93 Consolidated CTRA tax advantage arrangement
[Repealed]Section OP 93: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 94 Consolidated CTRA final balance
[Repealed]Section OP 94: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Consolidated groups’ FDP payments and refunds[Repealed]
Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 115(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 95 FDP payable for credits and debits in group’s CTR account
[Repealed]Section OP 95: repealed (with effect on 30 June 2009), on 6 October 2009, by section 475(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 96 Refund on transfer from group’s FDP account
[Repealed]Section OP 96: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 115(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Table O23: conduit tax relief credits of consolidated groups[Repealed]
Table O23: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 115(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Table O24: conduit tax relief debits of consolidated groups[Repealed]
Table O24: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 115(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Consolidated groups and branch equivalent tax accounts[Repealed]
Heading: repealed, on 1 July 2012, by section 116(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Introductory provisions[Repealed]
Heading: repealed, on 1 July 2012, by section 116(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 97 Branch equivalent tax accounts of consolidated BETA groups
[Repealed]OP 97: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 116(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 98 Choosing to stop being consolidated BETA group
[Repealed]OP 98: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 116(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 99 When credits and debits arise only in branch equivalent tax group accounts
[Repealed]Section OP 99: repealed (with effect on 30 June 2009), on 6 October 2009, by section 478(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Branch equivalent tax credits of consolidated BETA groups[Repealed]
Heading: repealed, on 1 July 2012, by section 118(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 100 Consolidated BETA payment of income tax on foreign income
[Repealed]Section OP 100: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 118(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 101 Consolidated BETA payment of income tax
[Repealed]Section OP 101: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 120(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OP 101(4B): amended (with effect on 1 April 2008), on 2 November 2012, by section 136(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section OP 101(4C)(b): amended (with effect on 1 April 2008), on 2 November 2012, by section 136(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
OP 102 Consolidated BETA remaining debit balances
[Repealed]Section OP 102: repealed (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 120(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OP 103 Consolidated BETA refund of FDP
[Repealed]Section OP 103: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 122(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 104 Consolidated BETA credit for loss of shareholder continuity
[Repealed]Section OP 104: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 122(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Treatment by consolidated BETA groups of BETA debits from conduit relief[Repealed]
Heading: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 122(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 104B Consolidated BETA group with debit balance, including debits from conduit relief, in certain income years
[Repealed]Section OP 104B: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 122(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Branch equivalent tax debits of consolidated BETA groups[Repealed]
Heading: repealed (with effect on 30 June 2009), on 6 October 2009, by section 479(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 105 Consolidated BETA payment of FDP
[Repealed]Section OP 105: repealed (with effect on 30 June 2009), on 6 October 2009, by section 479(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 106 Consolidated BETA reduction of FDP
[Repealed]Section OP 106: repealed (with effect on 30 June 2009), on 6 October 2009, by section 479(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 107 Consolidated BETA refund of income tax
[Repealed]Section OP 107: repealed (with effect on 30 June 2009), on 6 October 2009, by section 479(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 108 Consolidated BETA debit for loss of shareholder continuity
[Repealed]Section OP 108: repealed (with effect on 30 June 2009), on 6 October 2009, by section 479(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Debit if credit balance at beginning of first affected income year[Repealed]
Heading: repealed (with effect on 30 June 2009), on 7 September 2010, by section 110 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OP 108B Consolidated BETA group with credit balance at beginning of first affected income year
[Repealed]OP 108B: repealed (with effect on 30 June 2009), on 7 September 2010, by section 110 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Table O25: branch equivalent tax credits of consolidated BETA groups[Repealed]
Table O25: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 124(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Table O26: branch equivalent tax debits of consolidated BETA groups[Repealed]
Table O26: repealed (with effect on 30 June 2009), on 6 October 2009, by section 482(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Consolidated groups and policyholder credit accounts[Repealed]
Heading: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Introductory provision[Repealed]
Heading: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 109 Policyholder credit accounts of consolidated groups
[Repealed]Section OP 109: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Policyholder credits of consolidated groups[Repealed]
Heading: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 110 Consolidated PCA transfer from imputation credit account
[Repealed]Section OP 110: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 111 Consolidated PCA transfer from FDP account
[Repealed]Section OP 111: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 112 Consolidated PCA group company’s credit
[Repealed]Section OP 112: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 113 Consolidated PCA maximum deficit debit in FDP account
[Repealed]Section OP 113: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 114 Consolidated PCA reduced deficit debit in FDP account
[Repealed]Section OP 114: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Policyholder debits of consolidated groups[Repealed]
Heading: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 115 Consolidated PCA payment of tax relating to policyholder base
[Repealed]Section OP 115: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 116 Consolidated PCA transfer to imputation credit account
[Repealed]Section OP 116: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O27: policyholder credits of consolidated groups[Repealed]
Table O27: repealed, on 1 July 2010, by section 484(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O28: policyholder debits of consolidated groups[Repealed]
Table O28: repealed, on 1 July 2010, by section 484(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Subpart OZ—Terminating provisions
Contents
OZ 1 No imputation credit for pre-imputation tax paid
No imputation credit arises in the imputation credit account of an imputation credit account (ICA) company for a payment of income tax imposed for a pre-imputation income year.
Defined in this Act: ICA company, imputation credit, imputation credit account, income tax, pay, pre-imputation income year
Compare: 2004 No 35 s ME 4(1)(a)(viii)
OZ 2 No imputation debit for pre-imputation refund
No imputation debit arises in the imputation credit account of an ICA company for a refund of income tax for a pre-imputation income year.
Defined in this Act: ICA company, imputation credit account, imputation debit, income tax, pre-imputation income year
Compare: 2004 No 35 s ME 5(1)(e)(i)
OZ 3 Overpaid income tax for pre-imputation income year
Debit
(1)
An ICA company has an imputation debit for an amount of overpaid income tax that is applied to satisfy the company’s income tax liability under section BB 1 (Imposition of income tax) for a pre-imputation income year. Subsection (2) overrides this section.
No debit
(2)
The debit does not include an amount of overpaid income tax that is—
(a)
paid before an imputation debit under section OB 41 (ICA debit for loss of shareholder continuity); and
(b)
no more than the debit for loss of shareholder continuity.
Table references
(3)
The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 11 (overpayment of income tax). The imputation debit in subsection (2)(a) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity).
Debit date
(4)
The debit date is the day the amount is applied.
Defined in this Act: amount, company, ICA company, imputation credit account, imputation debit, income tax, income tax liability, pay, pre-imputation income year, shareholder
Compare: 2004 No 35 s ME 5(1)(n)
Section OZ 3 heading: amended, on 1 April 2017, by section 247(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 3(1): replaced, on 1 April 2017, by section 247(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 3(2): amended, on 1 April 2017, by section 247(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 3(3): amended, on 1 April 2017, by section 247(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 3 list of defined terms FDP: repealed, on 1 April 2017, by section 247(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 3 list of defined terms FDPA company: repealed, on 1 April 2017, by section 247(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OZ 4 Terminating modifications to debits for loss of shareholder continuity
The terminating modifications that apply under section OA 8(8) (Shareholder continuity requirements for memorandum accounts) are—
(a)
the shareholder continuity requirement does not apply to a credit that arises on or before 16 December 1988; and
(b)
credits arising after 16 December 1988 and before 1 April 1992 are treated as 1 credit arising on 1 April 1992 and, until such time as the credit can be treated as cancelled by later debits,—
(i)
the shareholder continuity requirement applying to the credit is the earlier version of the requirement incorporated in section 394E(2)(g) of the Income Tax Act 1976 (despite its repeal and replacement by section 51 of the Income Tax Act Amendment Act (No 2) 1992); and
(ii)
the earlier version of the requirement of section 394E(2)(g) applies by reading the figure “66”
instead of the figure “75”
.
Defined in this Act: shareholder
OZ 5 ASCA lost excess available subscribed capital
When this section applies
(1)
This section applies when a public unit trust or a group investment fund that derives category A income—
(a)
is in existence between 17 October 2002 and 30 September 2003 (both dates inclusive); and
(b)
has redeemed a unit in the trust or fund; and
(c)
the slice rule was used to determine the tax treatment of the proceeds from the redemption; and
(d)
the amount of the available subscribed capital, calculated on a per unit basis, is greater than the proceeds from the redemption for the unit.
Calculating opening balance
(2)
The trust or fund may choose for the period to calculate an opening credit balance using 1 of the methods set out in subsections (3) and (4).
Method 1
(3)
Method 1 requires the trust or fund to calculate the actual amount of available subscribed capital lost, that is the difference, in total, between the amount paid on subscription for a unit and the amount paid on redemption of the unit.
Method 2
(4)
Method 2 requires the trust or fund to make a calculation for the notional winding up of the trust or fund by taking the following steps:
(a)
step 1: determine the total amount of income tax that would be payable on liquidation, treating the value of assets and liabilities as determined at their market value at the date of the notional liquidation according to provisions applying at that date:
(b)
step 2: determine the amount of notional credits that are available after notional tax is paid in relation to them:
(c)
step 3: determine the amount of notional credits required to fully impute, for each unit holder, the payment of a redemption dividend, and aggregate the amounts, applying the maximum imputation ratio to the total amount:
(d)
step 4: establish the imputation credit shortfall between the notional credits under step 2 and the credits required under step 3.
Opening balance
(5)
The amount of the opening balance is—
(a)
the amount of the difference for method 1; and
(b)
the shortfall referred to in subsection (4)(d) for method 2.
Certain causes of shortfalls
(6)
For the purposes of subsection (4), the structural features of the taxation and imputation systems that would allow a company that does not issue shares on terms subject to section CD 22(4) (Returns of capital: off-market share cancellations) to fully impute a distribution made on the liquidation of the company, include the tax effects of—
(a)
non-taxable gains and losses, including exempt income; and
(b)
imputation credits lost because shareholder continuity is lost; and
(c)
foreign tax credits; and
(d)
retained earnings generated before the trust or fund established an imputation credit account.
Date of notional liquidation, orderly calculations
(7)
For the purposes of this section,—
(a)
the date of notional liquidation is the date chosen by the trust or fund falling in the period referred to in subsection (1)(a):
(b)
a calculation under this section must be undertaken in a manner consistent with the preparation of financial statements and unit pricing calculations, based on an orderly realisation of assets in the ordinary course of business and demonstrable market valuations.
Defined in this Act: amount, available subscribed capital, business, category A income, company, dividend, exempt income, financial statements, group investment fund, imputation credit, imputation credit account, imputation ratio, liquidation, pay, public unit trust, share, shareholder, slice rule, tax credit
Compare: 2004 No 35 ss MJ 1(2), MJ 4, MJ 5(1)
Section OZ 5(1)(d): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 121(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OZ 5(6)(a): substituted (with effect on 30 June 2009), on 6 October 2009, by section 485(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OZ 5 list of defined terms foreign tax: repealed, on 30 March 2017, by section 248(a) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 5 list of defined terms tax credit: inserted, on 30 March 2017, by section 248(b) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 5 compare note: amended (with effect on 1 April 2008), on 29 August 2011, by section 121(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OZ 6 ASCA redemption of unused investments
When this section applies
(1)
The section applies when a public unit trust or a group investment fund that derives category A income—
(a)
redeems a share within the meaning in paragraphs (c) and (d) of the definition of share in section YA 1 (Definitions); and
(b)
has never established an ASC account.
Election
(2)
The company may choose to establish an ASC account, and the only ASC credit arising in the account is an ASC credit for an opening balance calculated under section OZ 5(5).
Closing balance
(3)
An opening balance under subsection (2) is treated as the closing balance of the account.
Defined in this Act: ASC account, ASC credit, category A income, complying trust, group investment fund, public unit trust, share
Compare: 2004 No 35 s MJ 7
OZ 7 Memorandum accounts in transitional period
Unless the context otherwise requires, sections OZ 8 to OZ 15 apply for a period (the transitional period)—
(a)
beginning the first day of a person’s 2011–12 income year; and
(b)
ending on 31 March 2013.
Defined in this Act: income year
Section OZ 7: substituted, on 1 October 2010, by section 14 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
OZ 7B Maori authority credit ratios for transitional period
When this section applies
(1)
This section applies when a Maori authority makes a taxable Maori authority distribution in the transitional period referred to in section OZ 7.
Application of modified sections OZ 8 to OZ 15
(2)
Sections OZ 8 to OZ 11 and OZ 13 apply for the transitional period to the Maori authority and the taxable Maori authority distribution as if,—
(a)
for each section,—
(i)
a reference to a company had been replaced by a reference to a Maori authority:
(ii)
a reference to a dividend had been replaced by a reference to a taxable Maori authority distribution:
(iii)
a reference to an imputation credit account had been replaced by a reference to a Maori authority credit account:
(iv)
a reference to an imputation credit had been replaced by a reference to a Maori authority credit:
(v)
a reference to a benchmark dividend had been replaced by a reference to a benchmark distribution:
(vi)
a reference to an imputation ratio had been replaced by a reference to a Maori authority credit ratio:
(vii)
[Repealed](b)
in section OZ 8(2), the reference to 30% had been replaced by a reference to 19.5%:
(c)
in section OZ 9,—
(i)
in subsection (1)(b), the reference to sections OB 61(4) and OC 28(4) had been replaced by a reference to section OK 20(3):
(ii)
in subsection (1)(c)(ii), the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5:
(iii)
in subsection (3)(b), the reference to a ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5:
(d)
in section OZ 10,—
(i)
in subsection (1)(b), a reference to a ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5 and a reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5:
(ii)
subsection (1)(b)(ii) and (iii) were omitted:
(iii)
in subsection (2), the reference to section LE 8 had been replaced by a reference to section LO 3:
(iv)
in subsection (2), the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5:
(e)
in section OZ 11,—
(i)
in subsection (1)(b)(i), the reference to a ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5 and the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5:
(ii)
subsection (1)(b)(ii) and (iii) had been omitted:
(iii)
in subsection (1)(c), a reference to a new company tax rate person had been replaced by a reference to a Maori authority that uses a 17.5% basic tax rate for the 2011–12 income year or later income years:
(iv)
in subsection (2), in the formula, the figure 0.28 had been replaced by the figure 17.5:
(v)
in subsection (3), the reference to section LE 1(1) had been replaced by a reference to section LO 1(1):
(vi)
subsections (4) and (5) had been omitted:
(f)
in section OZ 13,—
(i)
in subsection (1), the reference to the ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5 and the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5:
(ii)
in subsection (2), the reference to the ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5.
Defined in this Act: benchmark distribution, income year, Maori authority, Maori authority credit, Maori authority credit account, Maori authority credit ratio, taxable Maori authority distribution
Section OZ 7B: inserted (with effect on 1 October 2010), on 21 December 2010, by section 120 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section OZ 7B(2)(a)(vii): repealed, on 1 April 2017, by section 249(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 7B(2)(d)(iii): amended, on 1 April 2017, by section 249(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 7B(2)(e)(v): amended, on 1 April 2017, by section 249(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
OZ 8 Attaching imputation credits: maximum permitted ratio
When this section applies
(1)
This section applies when—
(a)
a company pays a dividend in the transitional period; and
(b)
the company has a credit balance in its imputation credit account from income, expenditure, memorandum account debits, credits, and balances, refunds, tax, tax credits, transfers, amounts withheld, or other items dealt with, arising, or calculated using an old company tax rate.
Rate applying for transitional period
(2)
If the amount of the imputation credit attached to the dividend is limited by the maximum permitted ratio set out in section OA 18 (Calculation of maximum permitted ratios), the company may choose to treat the item tax rate in the formula in section OA 18(2) as 30%.
Defined in this Act: amount, company, dividend, imputation credit, imputation credit account, income, maximum permitted ratio, tax credit, tax year, transitional period
Section OZ 8: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OZ 8 heading: amended, on 1 April 2017, by section 250(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 8(1)(b): amended, on 1 April 2017, by section 250(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 8(2): amended, on 1 April 2017, by section 250(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 8(2): amended, on 1 October 2010, by section 15 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 8 list of defined terms FDP account: repealed, on 1 April 2017, by section 250(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 8 list of defined terms FDP credit: repealed, on 1 April 2017, by section 250(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 8 compare note: repealed (with effect on 1 April 2008), on 21 December 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
OZ 9 Benchmark dividends: ratio change
When this section applies
(1)
This section applies when—
(a)
a company pays a dividend in the transitional period; and
(b)
the dividend is a later dividend for the purposes of sections OB 61(4) and OC 28(4) (which relate to the benchmark dividend rules), as applicable; and
(c)
the relevant benchmark dividend—
(i)
was 1 to which section OZ 8 applied; or
(ii)
has a ratio of 30/70, for a reason other than the application of section OZ 8.
When ratio treated as same as ratio for benchmark dividend
(2)
If, in the cases set out in subsection (3), the imputation ratio of the later dividend is less than that of the relevant benchmark dividend, the ratio is treated as the same as that of the relevant benchmark dividend.
Cases
(3)
The cases referred to in subsection (2) are the following:
(a)
in the case of a benchmark dividend described in subsection (1)(c)(i), section OZ 8 does not apply to the later dividend through the lack of a relevant credit balance described in section OZ 8(1)(b):
(b)
in the case of a benchmark dividend described in subsection (1)(c)(ii), the later dividend has a ratio of 28/72.
Defined in this Act: benchmark dividend, company, dividend, imputation ratio, transitional period
Section OZ 9: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OZ 9(1)(c)(ii): amended, on 1 October 2010, by section 16(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 9(2): amended, on 1 April 2017, by section 251(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 9(3)(b): amended, on 1 October 2010, by section 16(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 9 list of defined terms FDP ratio: repealed, on 1 April 2017, by section 251(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 9 compare note: repealed (with effect on 1 April 2008), on 21 December 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
OZ 10 Modifying ratios for imputation credits
When this section applies
(1)
This section applies when—
(a)
a person derives a dividend in the period from 1 October 2010 to 31 March 2013; and
(b)
the dividend and the imputation credits attached to the dividend, as applicable, have—
(i)
an imputation ratio greater than 28/72 and less than or equal to 30/70.
(ii)
[Repealed](iii)
[Repealed]Ratio applying
(2)
For the purposes of section LE 8 (Application of imputation ratio), if the amount of the imputation credit is limited by the maximum permitted ratio set out in section OA 18 (Calculation of maximum permitted ratios), the ratio is treated as 30/70.
Defined in this Act: dividend, imputation credit, imputation ratio, maximum permitted ratio, transitional period
Section OZ 10: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OZ 10 heading: amended, on 1 April 2017, by section 252(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 10(1)(a): amended, on 1 October 2010, by section 17(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 10(1)(b): amended, on 1 April 2017, by section 252(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 10(1)(b)(i): amended, on 1 April 2017, by section 252(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 10(1)(b)(i): amended, on 1 October 2010, by section 17(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 10(1)(b)(ii): repealed, on 1 April 2017, by section 252(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 10(1)(b)(iii): repealed, on 1 April 2017, by section 252(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 10(2): replaced, on 1 April 2017, by section 252(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 10 list of defined terms combined imputation and FDP ratio: repealed, on 1 April 2017, by section 252(7) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 10 list of defined terms FDP credit: repealed, on 1 April 2017, by section 252(7) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 10 list of defined terms FDP ratio: repealed, on 1 April 2017, by section 252(7) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 10 compare note: repealed (with effect on 1 April 2008), on 21 December 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
OZ 11 Tax credits for imputation credits
When this section applies
(1)
This section applies when—
(a)
a person—
(i)
derives a dividend in the transitional period, if the person is a new company tax rate person that is not a multi-rate PIE:
(ii)
derives a dividend in the period from 1 October 2010 to 31 March 2013, if the person is a new company tax rate person that is a multi-rate PIE; and
(b)
the dividend, and the imputation credits attached to the dividend, have—
(i)
an imputation ratio greater than 28/72 and less than or equal to 30/70; and
(ii)
[Repealed](iii)
[Repealed](c)
the person is a new company tax rate person in the period for the dividend.
Imputation ratio
(2)
For a ratio described in subsection (1)(b)(i), the amount of the tax credit that the person has is calculated using the formula—
dividend and credits × 0.28.
Definition of item in formula
(3)
In the formula in subsection (2), dividend and credits is the amount of the imputation credit included in the person’s assessable income for the purposes of section LE 1(1) (Tax credits for imputation credits), together with the amount of dividend to which the credit is attached.
Combined imputation and FDP ratio[Repealed]
(4)
[Repealed]Definition of item in formula[Repealed]
(5)
[Repealed]Defined in this Act: amount, assessable income, basic tax rate, dividend, imputation credit, imputation ratio, multi-rate PIE, new company tax rate person, tax credit, total tax credit, transitional period
Section OZ 11: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OZ 11 heading: amended, on 1 April 2017, by section 253(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(1)(a): substituted, on 1 October 2010, by section 18(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 11(1)(b): amended, on 1 April 2017, by section 253(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(1)(b)(i): amended, on 1 April 2017, by section 253(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(1)(b)(i): amended, on 1 October 2010, by section 18(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 11(1)(b)(ii): repealed, on 1 April 2017, by section 253(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(1)(b)(iii): repealed, on 1 April 2017, by section 253(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(1)(c): amended, on 1 October 2010, by section 18(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 11(2) heading: amended, on 1 April 2017, by section 253(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(2): amended, on 1 April 2017, by section 253(7) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(2) formula: amended, on 1 October 2010, by section 18(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 11(3): replaced, on 1 April 2017, by section 253(8) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(4) heading: repealed, on 1 April 2017, pursuant to section 253(9) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(4): repealed, on 1 April 2017, by section 253(9) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(5) heading: repealed, on 1 April 2017, pursuant to section 253(10) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11(5): repealed, on 1 April 2017, by section 253(10) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11 list of defined terms combined imputation and FDP ratio: repealed, on 1 April 2017, by section 253(11) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11 list of defined terms FDP credit: repealed, on 1 April 2017, by section 253(11) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11 list of defined terms FDP ratio: repealed, on 1 April 2017, by section 253(11) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 11 list of defined terms multi-rate PIE: inserted, on 1 October 2010, by section 18(6) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 11 list of defined terms new company tax rate person: inserted, on 1 October 2010, by section 18(6) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 11 compare note: repealed (with effect on 1 April 2008), on 21 December 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
OZ 12 Tax credits for non-resident investors
When this section applies
(1)
This section applies when—
(a)
a company pays or derives a dividend with an imputation credit attached in the transitional period; and
(b)
the dividend and imputation credit, to the extent to which, in the absence of subpart LP (Tax credits for supplementary dividends),—
(i)
[Repealed](ii)
the imputation ratio is greater than 28/72 and less than or equal to 30/70; and
(c)
section LP 2(1) (Tax credits for supplementary dividends) applies to the company, or the company is a supplementary dividend holding company.
When ratio equal to old rate
(2)
For a ratio described in subsection (1)(b)(i) or (ii) that is equal to 30/70, then any tax credit that the company has is calculated using the formula in section LP 2(2), treating 54/119 as 7/17.
When ratio less than old rate
(3)
For a ratio described in subsection (1)(b)(i) or (ii) that is less than 30/70, then, to the extent to which a part of the amount of the dividend and imputation credit has a ratio of 30/70 through the application of section OZ 8, any tax credit that the company has is calculated using the formula in section LP 2(2), treating 54/119 as 7/17.
Benchmark calculations
(4)
In the application of sections GB 35, GB 36, OA 18, OB 60, and OB 61 (which relate to imputation credit ratios) under section LP 5 (Application of benchmark dividend rules and imputation credit ratio), the provisions apply using the ratio 30/70 and the old company tax rates.
Relationship with exempt income rules
(5)
If the company derives a dividend to which this section applies, item tax rate in the formula in section LP 8(2) (Relationship with exempt income rules) is treated as 30%, to the extent to which a part of the supplementary dividend was calculated as described in subsection (2) or (3).
Defined in this Act: amount, company, dividend, imputation credit, imputation ratio, non-resident, pay, supplementary dividend, supplementary dividend holding company, tax credit, transitional period
Section OZ 12: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OZ 12(1)(b)(i): repealed, on 1 April 2017, by section 254(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 12(1)(b)(ii): amended, on 1 October 2010, by section 19(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(1)(b)(ii): amended, on 1 October 2010, by section 19(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(2): amended, on 1 October 2010, by section 111(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OZ 12(2): amended, on 1 October 2010, by section 19(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(2): amended, on 1 October 2010, by section 19(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(2): amended (with effect from 1 April 2008), on 29 May 2008, by section 37(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
Section OZ 12(3): amended, on 1 October 2010, by section 111(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OZ 12(3): amended, on 1 October 2010, by section 19(3)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(3): amended, on 1 October 2010, by section 19(3)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(3): amended (with effect from 1 April 2008), on 29 May 2008, by section 37(2) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
Section OZ 12(4): amended, on 1 April 2017, by section 254(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 12(4): amended, on 1 October 2010, by section 19(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(5): amended, on 1 October 2010, by section 19(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12 list of defined terms combined imputation and FDP ratio: repealed, on 1 April 2017, by section 254(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 12 compare note: repealed (with effect on 1 April 2008), on 21 December 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
OZ 13 Fully credited dividends: modifying actual ratio
What this section applies to
(1)
This section applies in the transitional period to a dividend for which, in the absence of this section, the actual ratio under section CD 43(26) (Available subscribed capital (ASC) amount) is greater than 28/72 and less than or equal to 30/70.
Ratio for calculation
(2)
In the calculation under section CD 43(26), the part of the dividend that is fully credited, the actual ratio is treated as 28/72.
Defined in this Act: dividend, fully credited, transitional period
Section OZ 13: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OZ 13(1): amended, on 1 October 2010, by section 20(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 13(1): amended, on 1 October 2010, by section 20(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 13(2): amended, on 1 October 2010, by section 20(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 13 compare note: repealed (with effect on 1 April 2008), on 21 December 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
OZ 14 Dividends from qualifying companies
When this section applies
(1)
This section applies when—
(a)
a qualifying company pays a dividend in the transitional period; and
(b)
section OZ 8 applies to the dividend.
Exempt income
(2)
In the calculation under section HA 14 (Dividends paid by qualifying companies) the extent to which the dividend is exempt income of the person, item tax rate in the formula in section HA 15(2) (Fully imputed dividends) is treated as 0.30.
Defined in this Act: dividend, exempt income, qualifying company, transitional period
Section OZ 14: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OZ 14(2): amended, on 1 October 2010, by section 21 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 14 compare note: repealed (with effect on 1 April 2008), on 21 December 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
OZ 15 Attaching imputation credits and notional distributions: modifying amounts
When this section applies
(1)
This section applies when—
(a)
a statutory producer board or a co-operative company determines to pay a cash distribution or make a notional distribution in the transitional period; and
(b)
the board or company has a credit balance in its imputation credit account from income, expenditure, memorandum account debits, credits, and balances, refunds, tax, tax credits, transfers, amounts withheld, or other items dealt with, arising, or calculated using an old company tax rate.
Statutory producer boards’ imputation credits
(2)
In the calculation under section OB 73(4) (Statutory producer boards attaching imputation credits to cash distributions), the board may choose to treat item tax rate in the formula as 30%.
Statutory producer boards’ notional distributions
(3)
In the calculation under section OB 75(2) (Statutory producer boards’ notional distributions that are dividends), the board may choose to treat item tax rate in the formula as 30%.
Co-operative companies’ imputation credits
(4)
In the calculation under sections OB 78(3) and OB 78B(3) (which relate to co-operative companies making cash distributions), the company may choose to treat item tax rate in the formula as 30%. This subsection does not apply to a Maori authority.
Co-operative companies’ notional distributions
(5)
In the calculation under section OB 80(2) (Co-operative companies’ notional distributions that are dividends), the company may choose to treat item tax rate in the formula as 30%. This subsection does not apply to a Maori authority.
Defined in this Act: amount, co-operative company, imputation credit account, income, Maori authority, statutory producer board, tax credit, transitional period
Section OZ 15: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OZ 15(2): amended, on 1 October 2010, by section 22(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 15(3): amended, on 1 October 2010, by section 22(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 15(4): amended, on 26 June 2019, by section 73 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section OZ 15(4): amended, on 1 October 2010, by section 22(c) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 15(5): amended, on 1 October 2010, by section 22(d) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 15 compare note: repealed (with effect on 1 April 2008), on 21 December 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
OZ 16 BETA reductions
[Repealed]Section OZ 16: repealed, on 1 July 2012 (applying for income years beginning on or after that date), by section 125(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OZ 17 CTRA reductions
[Repealed]Section OZ 17: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 126(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OZ 18 Credit-back of PCA balance
[Repealed]Section OZ 18: repealed, on 30 March 2017, by section 255 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
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Versions
Income Tax Act 2007
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