Section LE 10 — Income Tax Act 2007: When income tax unpaid

LE 10 When income tax unpaid When this section applies (1) This section applies when— (a) a person has a tax credit under section LE 1 and an imputation credit is attached to a dividend; and (b) the dividend is paid by a company that has a debit balance in its imputation credit account at the end of the tax year; and (c) the company has not paid further income tax by the due date in section OB 65(3) (Further income tax for ICA closing debit balance). Amount of reduction (2) The Commissioner may reduce the person’s credit by an amount equal to their proportion of the unpaid amount under subsection (1)(c). When failure to pay remedied (3) To the extent to which a company remedies the failure after the due date, this section does not apply. Defined in this Act: amount , Commissioner , company , dividend , further income tax , imputation credit , imputation credit account , pay , tax credit , tax year , Compare: 2004 No 35 ss LB 1(1)(h) , LB 2(5), (6)