Section LK 14 — Income Tax Act 2007: Use by amalgamated company of credits carried forward

LK 14 Use by amalgamated company of credits carried forward When this section applies (1) This section applies when an amalgamated company has a tax credit under this subpart for a tax year before that in which the amalgamation takes place, and the credit has not been used before the date of amalgamation. Restrictions on carrying credit forward: year of amalgamation (2) The credit may be carried forward to the tax year of amalgamation or a later tax year only if— (a) the requirements of sections LK 1 to LK 5 are met; and (b) the credit could be made available under section LK 6 for the part of the tax year ending with the date of the amalgamation to each amalgamating company. Restrictions on carrying credit forward: order (3) If the tax credits of 2 or more amalgamating companies are credited under section LK 13 against the amalgamated company’s income tax liability for a tax year, those tax credits must— (a) if resulting from tax payable in 2 or more tax years, be credited in the same order as arising; and (b) if resulting from tax payable in the same tax year, be credited, so far as the tax extends,— (i) in the order chosen by the amalgamated company by notice to the Commissioner; or (ii) otherwise, on a pro rata basis. Defined in this Act: amalgamated company , amalgamating company , amalgamation , Commissioner , income tax liability , pay , tax credit , tax year , Compare: 2004 No 35 ss LC 9 , LC 10