Trans-Tasman imputation for New Zealand companies

Information for New Zealand companies

Electing to maintain an Australian franking account

The Australian government have passed reciprocal laws. New Zealand companies considering electing into the Australian franking system should refer to the "trans-Tasman imputation" update in the "For Businesses" section of the Australian Tax Office (ATO) website.

Imputation grouping

Groups of New Zealand companies are now able to elect to form an imputation group. In brief, the legislation:

• Allows eligible wholly owned groups of Australian and/or New Zealand companies to group for imputation purposes only. Groups with both Australian and New Zealand members will be known as trans-Tasman imputation groups (TTIG's).
  
  
• Applies for the 2004 Imputation year (1 April 2003 to 31 March 2004) onwards. Elections will apply from the beginning of the imputation year in which they are received.
  
  
• Allows consolidated groups to elect to become part of an imputation group, but only if the entire consolidation group join.
  
  
• Requires the New Zealand companies within a trans-Tasman imputation group to maintain a separate 'resident imputation subgroup' account. This account will have different accounting transactions to the TTIG.
  
  
• All companies in the imputation group will be jointly and severally liable for any default of further income tax, civil penalties and interest.
  
  
• Groups will be allocated a group representative IRD number under which annual imputation returns will be filed. Group members, where required, will continue to file their own income tax returns and fulfil all other tax obligations as normal.
  
  
• Requires the group to elect a 'nominated company' who will be the point of contact and have responsibility for return filing. For trans-Tasman imputation groups, the nominated company must be a New Zealand resident and will also be responsible for keeping the 'resident subgroup account' and filing its imputation return should the account go into debit an imputation year end.
  
  

We will have published further details of this legislation in the February 2004 edition of Inland Revenue's Tax Information Bulletin (TIB).

Forms

Election to form an imputation group (IR473)

This form includes imputation group elections and the election of the nominated company. A printable version of this form is available, once downloaded, complete and send to us (the mailing details are on the form).

Imputation group maintenance form (IR475)

Use the IR475 to elect to join an existing imputationgroup, leave an imputation group or change the nominated company.

Contacting us

The Corporates Segment of Inland Revenue will be handling all enquiries regarding Imputation grouping. If your company is currently account managed by Corporates please contact your Business Services Account Manager with any queries. Otherwise contact us by:

Phone: 0800 443 733
email: transtasman@ird.govt.nz
Mail: Inand Revenue Department
Corporates segment
PO Box 2198
Wellington

Date published: 01 Jan 2005

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