Section OZ 12 — Income Tax Act 2007: Tax credits for non-resident investors

OZ 12 Tax credits for non-resident investors When this section applies (1) This section applies when— (a) a company pays or derives a dividend with an imputation credit attached in the transitional period; and (b) the dividend and imputation credit, to the extent to which, in the absence of subpart LP (Tax credits for supplementary dividends),— (i) the combined imputation and FDP ratio is greater than 28/72 and less than or equal to 30/70; or (ii) the imputation ratio is greater than 28/72 and less than or equal to 30/70; and (c) section LP 2(1) (Tax credits for supplementary dividends) applies to the company, or the company is a supplementary dividend holding company. When ratio equal to old rate (2) For a ratio described in subsection (1)(b)(i) or (ii) that is equal to 30/70, then any tax credit that the company has is calculated using the formula in section LP 2(2) , treating 54/119 as 7/17. When ratio less than old rate (3) For a ratio described in subsection (1)(b)(i) or (ii) that is less than 30/70, then, to the extent to which a part of the amount of the dividend and imputation credit has a ratio of 30/70 through the application of section OZ 8 , any tax credit that the company has is calculated using the formula in section LP 2(2) , treating 54/119 as 7/17. Benchmark calculations (4) In the application of sections GB 35 , GB 36 , OA 18 , OB 60 , OB 61 , OC 28 (which relate to imputation and FDP credit ratios) under section LP 5 (Application of benchmark dividend rules and imputation credit ratio), the provisions apply using the ratio 30/70 and the old company tax rates. Relationship with exempt income rules (5) If the company derives a dividend to which this section applies, item tax rate in the formula in section LP 8(2) (Relationship with exempt income rules) is treated as 30%, to the extent to which a part of the supplementary dividend was calculated as described in subsection (2) or (3). Defined in this Act: amount , combined imputation and FDP ratio , company , dividend , imputation credit , imputation ratio , non-resident , pay , supplementary dividend , supplementary dividend holding company , tax credit , transitional period Section OZ 12: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section OZ 12(1)(b)(i): amended, on 1 October 2010, by section 19(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 12(1)(b)(i): amended, on 1 October 2010, by section 19(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 12(1)(b)(ii): amended, on 1 October 2010, by section 19(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 12(1)(b)(ii): amended, on 1 October 2010, by section 19(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 12(2): amended, on 1 October 2010, by section 111(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section OZ 12(2): amended, on 1 October 2010, by section 19(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 12(2): amended, on 1 October 2010, by section 19(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 12(2): amended (with effect from 1 April 2008), on 29 May 2008, by section 37(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section OZ 12(3): amended, on 1 October 2010, by section 111(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section OZ 12(3): amended, on 1 October 2010, by section 19(3)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 12(3): amended, on 1 October 2010, by section 19(3)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 12(3): amended (with effect from 1 April 2008), on 29 May 2008, by section 37(2) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section OZ 12(4): amended, on 1 October 2010, by section 19(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 12(5): amended, on 1 October 2010, by section 19(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 12 compare note: repealed (with effect on 1 April 2008), on 21 December 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).