Section OP 2 — Income Tax Act 2007: When credits and debits arise only in group accounts

OP 2 When credits and debits arise only in group accounts Credits only in group account (1) A credit may arise only in the memorandum account of a consolidated group and not in the memorandum account of a group company, unless another provision expressly states otherwise. Debits only in group account (2) A debit may arise only in the memorandum account of a consolidated group and not in the memorandum account of a group company, unless another provision expressly states otherwise. Particular credits and debits (3) The credit referred to in subsection (1) and the debit referred to in subsection (2) are listed in provisions in this subpart. Company’s obligation overridden (4) This section applies despite— (a) the obligation that a group company may have under this Part to record a credit or debit; and (b) the fact that the credit and debit referred to in this section may otherwise be eligible to give rise to a credit or debit in the group company’s account. Defined in this Act: company , consolidated group , memorandum account , Compare: 2004 No 35 ss ME 13 , ME 27 , MF 9 , MG 16 , MI 19