Skip to main content

Security From 30 October, we are increasing the security of our websites. If you have an old browser, you may need to update it.

Ngā rōpū whakatōpū Consolidated groups

Back

Two or more companies owned by the same shareholders can be treated as a single entity. Wholly owned companies can choose to be treated as a consolidated group of companies.

Consolidating your company

Consolidated, wholly owned groups of companies can:

  • transfer assets within the consolidation group, with deferred income tax liabilities
  • pay exempt dividends between companies
  • claim deductions for administration and other costs of holding companies that may not be deductible to the holding company that incurred the expenditure
  • use losses incurred by group members by referring to shareholding continuity of the group, not of the individual member
  • offset imputation credits within the group, even though ordinary imputation credit rules do not permit the grouping of imputation credits.

Leaving the consolidated group

A company can leave a consolidated group by notifying us.

They will no longer be treated as a member from the beginning of the income year we receive the notice in.

If the company requests it they can be treated as a non-member for the income year after we receive their notice.

Companies can also cease to be a member of a consolidated group when they:

  • lose their eligibility status
  • are no longer entitled to be a member of the same consolidated group
  • belong to a consolidated group that ceases to have a nominated company.