Section OB 67 — Income Tax Act 2007: Reduction of further income tax

OB 67 Reduction of further income tax Debit at previous year-end (1) An ICA company’s liability for further income tax under sections OB 65 and OB 66 may be reduced under subsection (2) if— (a) a debit balance existed in the company’s imputation credit account at the end of a tax year; and (b) the credits that arise in the account in the following tax year totals less than the debit balance; and (c) the company notifies the Commissioner. Reduction applying for consecutive tax years (2) In relation to 2 tax years that are consecutive, the liability for further income tax at the end of the second tax year is reduced by the amount calculated using the formula— debit balance at end of second year − first year adjustment. Definition of items in formula (2B) In the formula in subsection (2),— (a) debit balance at end of second year is the amount of the debit balance in the company's imputation credit account at the end of the second tax year: (b) first year adjustment is the amount— (i) of the first year's debit balance in the company's imputation credit account less the credits made to the account during the second tax year; and (ii) that cannot be less than zero. Qualifying companies (3) The liability of an ICA company that is a qualifying company for further income tax under sections OB 65 and OB 66 may be reduced under subsection (4) if an imputation debit arises under section OB 32 (table O2: imputation debits, row 4 (refund of income tax)) in the company’s imputation credit account before the end of the tax year for which the liability arises. Amount of reduction (4) The liability of the qualifying company for further income tax at the end of the tax year referred to in subsection (3) is reduced by an amount calculated using the formula— refunds – credits. Definition of items in formula (5) In the formula in subsection (4),— (a) refunds is the total amount of all refunds of income tax paid to the company before the debit balance creating the liability for further income tax referred to in subsection (3) arises: (b) credits is the total amount of all credits to the company’s imputation credit account for the period that runs from the tax year in which the first refund was received to the time the calculation is made. Defined in this Act: amount , Commissioner , further income tax , ICA company , imputation credit account , imputation debit , imputation rules , income tax , notify , pay , qualifying company , tax year , Compare: 2004 No 35 s ME 9(7)–(9) Section OB 67(2) heading: substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), pursuant to section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section OB 67(2): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section OB 67(2B) heading: inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section OB 67(2B): inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section OB 67(5): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).