Section OC 1 — Income Tax Act 2007: General rules for companies with FDP accounts

OC 1 General rules for companies with FDP accounts FDPA company (1) A company resident in New Zealand may choose to become a foreign dividend payment account (FDPA) company. This subsection does not apply to a multi-rate PIE. FDP accounts (2) An FDPA company must maintain a foreign dividend payment (FDP) account for a tax year. The account is a record of FDP credits and FDP debits that arise in the account during the tax year. Main credit [Repealed] (3) [Repealed] Main debit (4) An FDPA company has an FDP debit for the amount of an FDP credit attached to a dividend paid to the company’s shareholders. Treatment of FDP credit by shareholder (5) The amount of an FDP credit attached to a dividend derived by a shareholder is included in the amount of the dividend under section CD 15 (Tax credits linked to dividends). Refunds (6) When a dividend with an FDP credit attached is derived by a non-resident or by a person who is resident and the dividend is exempt income of the person, they are entitled to a refund under section LF 8 (Credits for persons who are non-resident or who receive exempt income). Shareholder continuity requirements (7) The carrying forward of a credit in a company’s FDP account is subject to the shareholder continuity requirements of section OA 8 (Shareholder continuity requirements for memorandum accounts). Imputation credits (8) If a company does not choose to become an FDPA company, a payment of FDP on a dividend derived from a non-resident company is accounted for under the imputation rules under section OB 11 (ICA payment of FDP). Defined in this Act: amount , assessable income , company , dividend , exempt income , FDP account , FDP credit , FDP debit , FDPA company , imputation rules , income , multi-rate PIE , non-resident company , pay , resident in New Zealand , shareholder , tax year , Compare: 2004 No 35 ss CD 9 , LD 9 , ME 4(1)(e), (f) , MG 2(1), (3) , MG 4(1)(a), (b) , MG 5(3) Section OC 1(1): amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 401(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section OC 1(3) heading: repealed (with effect on 30 June 2009), on 6 October 2009, pursuant to section 401(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section OC 1(3): repealed (with effect on 30 June 2009), on 6 October 2009, by section 401(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section OC 1 list of defined terms multi-rate PIE : inserted, on 1 April 2010, by section 401(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section OC 1 list of defined terms portfolio tax rate entity : repealed, on 1 April 2010, by section 401(3)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).