Groups of New Zealand companies can choose to form an imputation group if they meet certain criteria. This allows some wholly owned groups of Australian and/or New Zealand companies to group for imputation purposes only.
Consolidated groups can choose to become part of an imputation group, but only if the entire consolidation group join.
Trans-Tasman imputation groups
Groups with both Australian and New Zealand members are known as Trans-Tasman imputation groups (TTIGs).
Any New Zealand companies within a Trans-Tasman imputation group will need to keep a separate 'resident imputation subgroup' account. This account will have different accounting transactions to the Trans-Tasman imputation group.
How imputation groups work
Groups of companies who want to become an imputation group send us a completed form. The imputation group applies from the start of the income year that we received the form in.
All companies in the imputation group will be jointly and severally liable for any further unpaid income tax, civil penalties and interest.
Groups will be allocated a group representative IRD number for yearly imputation returns to be filed under. Group members, where required, will still need to file their own income tax returns and meet all other tax obligations as normal.
The group will need to choose a 'nominated company' who will be the point of contact and have responsibility for group return filing.
The opening balance of a newly formed group imputation credit account is nil. An existing group’s balance is the closing balance of the previous imputation year.
Each group member's individual imputation credit account is kept separately from the group imputation credit account.
Individual imputation credit accounts will record the balance to the date of consolidation.
For Trans-Tasman imputation groups, the nominated company must be a New Zealand resident.
The company will also be responsible for keeping the 'resident imputation subgroup account' and filing its imputation return if the account goes into debit at the end of the imputation year.