Section GB 36 — Income Tax Act 2007: Reconstruction of imputation arrangements to obtain tax advantage

GB 36 Reconstruction of imputation arrangements to obtain tax advantage Reconstruction of either type of arrangement (1) In the case of a share disposal or issue arrangement described in section GB 35(2) , or a streaming arrangement described in section GB 35(3) , if the Commissioner decides this subsection should apply, the following paragraphs apply: (a) a person who would get a tax credit advantage from the arrangement is denied it: (b) a company that would get an account advantage from the arrangement has a debit to its imputation credit account or FDP account, as applicable, in the tax year in which the arrangement began. Reconstruction of streaming arrangement (2) In the case of a streaming arrangement described in section GB 35(3) in which the company is the only party, or if the Commissioner decides this subsection should apply, the company has a debit to its imputation credit account or FDP account, as applicable, in the tax year in which the arrangement began. Subsection (1) does not apply to the extent to which this subsection applies to the arrangement. Amount of adjustment (3) The amount of the credit or refund denied under subsection (1)(a) and the debit arising under subsection (1)(b) or (2) is in each case the amount of the imputation credit or FDP credit that the Commissioner determines is subject to the arrangement. Commissioner’s powers of determination (4) The Commissioner may make determinations for the purposes of this section under section 90AF of the Tax Administration Act 1994. Some definitions (5) In this section and section 90AF of the Tax Administration Act 1994,— account advantage means— (a) a credit arising to an imputation credit account under sections OB 4 to OB 29 (which relate to credits arising to imputation credit accounts); or (b) a credit arising to an FDP account under sections OC 6 to OC 12 (which relate to credits arising to FDP accounts) tax credit advantage means— (a) a tax credit allowed under section LE 1 (Tax credits for imputation credits); or (b) a tax credit allowed under section LF 1 (Tax credits for FDP credits); or (c) a refund of FDP obtained under section LF 8 (Credits for persons who are non-resident or who receive exempt income). Defined in this Act: account advantage , arrangement , Commissioner , company , FDP account , FDP credit , imputation credit , imputation credit account , notice , tax credit advantage , tax year , Compare: 2004 No 35 s GC 22(4), (5), (9)