Section LK 9 — Income Tax Act 2007: Use of company’s credits carried forward

LK 9 Use of company’s credits carried forward When this section applies (1) This section applies when a company that is part of a consolidated group of companies in an income year has a credit carried forward for the tax year corresponding to the income year. First use by consolidated group (2) The amount must first be used to satisfy the income tax liability of the consolidated group for the income year. However, the amount must not be more than the consolidated group’s quarantined amount. Second use by group company or another consolidated group (3) If, after applying subsection (2), an amount remains, the amount may be used to satisfy the income tax liability of the company or the income tax liability of another consolidated group in the income year. Sections LK 10 and LK 11 override this subsection. Third use: amount carried forward (4) If, after applying subsections (2) and (3), a balance remains, the amount must be carried forward to the next income year under section LK 4(2) . Defined in this Act: amount , company , consolidated group , corresponding income year , income tax liability , income year , quarantined amount , tax year , Compare: 2004 No 35 s LC 16(2), (3)