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IR4J Question 7 Credits



7Australian companies which elect to maintain a New Zealand ICA should include credits in Question 7D and 7E only.
7A Income tax paid

The imputation system started at the beginning of the 1989 income year. Include in Box 7A all payments of New Zealand income tax and provisional tax made from 1 April 2019 to 31 March 2020 that were for 1989 and later income years.

Don't include any FBT, ESCT, interest on tax, late payment penalties, imputation penalty tax or RWT.

7B FDP paid

The FDP rules have been fully repealed from 1 April 2017.Don’t include an amount at 7B.

7C RWT on interest received

If the company received interest with RWT deducted between 1 April 2019 to 31 March 2020, write the total RWT in Box 7C.

7D Imputation credits attached to dividends received

If the company received dividends with imputation credits attached between 1 April 2019 and 31 March 2020, write the total credits in Box 7D.

Include the full amount of credits received here. Don't limit this to the amount of income tax due on the dividends received—that limitation only applies to the amount of imputation credits you can claim in your Company income tax return (IR4).

7E Other credits

List any other credits made to the ICA from 1 April 2019 to 31 March 2020. Use a separate sheet of paper if there isn’t enough room and attach it to the return. Write the total in Box 7E.

Other types of credits include:

  • RWT on dividends received

  • provisional tax allocated to the company by a company in the same wholly owned group that has overpaid its provisional tax

  • specific credits for Australian companies which have elected to maintain a New Zealand ICA.

Supplementary available subscribed capital account (SASCA)

If you are a public unit trust or a group investment fund that maintains a SASCA and are eligible to transfer credits from that account to the ICA, please record the credits being transferred in Box 7E (other credits).

All public unit trusts or group investment funds maintaining a SASCA should, by the due date for filing the 2020 IR4 or IR4J, send a copy of that memorandum account, together with any written queries relating to the operation of the SASCA to:

Investment Desk
Large Enterprises
Inland Revenue
PO Box 2871
Christchurch 8140

For more information on negative dividends and the SASCA rules, see the Tax Information Bulletin (TIB) Vol 14, No 11 (November 2002).

Qualifying company election tax (QCET) payments

Include any QCET payments made after 17 May 2007 as a credit in the ICA when working out the account balance. Use the account balance in the formula when calculating the imputation credit to be attached to a dividend paid by the qualifying company.

See the Tax Information Bulletins (TIBs) Vol 11, No 5 (May/June 1999) and Vol 20, No 3, page 127 (April 2008).

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