I’m selling/getting a refund of tax deposited into the TMNZ tax pool account. How is the debit to my imputation credit account applied?

I’m selling/getting a refund of tax deposited into the TMNZ tax pool account. How is the debit to my imputation credit account applied?

I’m selling/getting a refund of tax deposited into the TMNZ tax pool account. How is the debit to my imputation credit account applied? 150 150 Support

The sale or refund of tax from a tax pooling account will have a retrospective impact on a company’s ICA. It is important that you are aware of the ICA balance at the preceding 31 March.

For income tax that is sold or refunded, the date of the debit to your ICA account will be:
(a) Last day of the previous tax year, up to the level of any ICA credit balance on that day; or
(b) The day of sale/refund for the remaining debit, up to the level of any ICA credit balance on that day;
(c) Last day of the previous tax year for the remainder of debit.

(Sections OB 34(4) and OB 35(4) of the Income Tax Act 2007).

An example of how a sale or refund can affect your imputation credit account can be viewed here.

Given the potential exposure to imputation penalty tax and interest, we recommend you contact TMNZ if you are unsure of how selling or refunding tax will affect your imputation credit account.

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