Paying with TMNZ

Where income tax is deposited into the TMNZ tax pool, imputation credits will arise in the imputation credit account on the date of the deposit (section OB 5 of the Income Tax Act 2007).

Where income tax is purchased from TMNZ, imputation credits will arise on the provisional tax date on which the tax was purchased – but can only be included in the respective imputation credit account when TMNZ transfers the tax from its tax pool account to the taxpayer’s IRD account (section OB 6 and RP 19…

Tax Finance operates in a similar way to a Flexitax® transaction. When a taxpayer has Tax Finance arrangement in place for an upcoming provisional tax date, there is no imputation credit recognition until TMNZ transfers the tax (post settlement) from the TMNZ tax pool to the taxpayer’s IRD account. Click here for an example.

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:…