Section OF 5 — Income Tax Act 2007: ASCA transfer to imputation credit account

OF 5 ASCA transfer to imputation credit account Election (1) An ASC account company may choose that some or all of the credit balance in the company’s ASC account is transferred to the company’s imputation credit account. Debit and credit (2) The amount of the credit balance transferred is— (a) an ASC debit for the full amount of the credit balance transferred; and (b) an imputation credit under section OB 18 (ICA transfer from ASC account) for the amount calculated under subsection (4). Table references (3) The ASC debit in subsection (2)(a) is referred to in table O12: ASC debits, row 2 (transfer to imputation credit account). The imputation credit in subsection (2)(b) is referred to in table O1: imputation credits, row 16 (transfer from ASC account). Amount (4) The amount of the credit to the imputation credit account is calculated using the formula— credit balance × maximum imputation ratio. Definition of items in formula (5) In the formula,— (a) credit balance is some or all of the credit balance in the company’s ASC account that the ASC account company chooses to use: (b) maximum imputation ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios). Timing of election (6) An election under subsection (1) may be made at any time when the company is an imputation credit account (ICA) company. Manner of election (7) A company makes an election under subsection (1) by recording the credit balance transferred as— (a) a debit in the company’s ASC account; and (b) a credit in the company’s imputation credit account. Debit date (8) The debit date is— (a) the day of election; or (b) the day before the company stops being an ICA company if the election is made on the occasion of cessation. Defined in this Act: amount , ASC account , ASC account company , ASC debit , ICA company , imputation credit , imputation credit account , imputation ratio , Compare: 2004 No 35 ss ME 4(1)(da) , MJ 6