Section RC 29 — Income Tax Act 2007: Residual income tax of consolidated groups

RC 29 Residual income tax of consolidated groups When this section applies (1) This section applies for the purposes of the provisional tax rules if a company is part of a consolidated group of companies in a tax year but was not part of the group for some or all of the preceding tax year. Increased residual income tax (2) The residual income tax of the consolidated group for the preceding tax year is treated as increased by an amount equal to the residual income tax of the company for the preceding tax year. If the company is part of the group for part of the current tax year, the amount of residual income tax is increased as a proportion on the basis of the part of the tax year during which the company is part of the group. Instalments after company joins group (3) If the company is part of a group for part of the tax year, this section applies only to instalments of provisional tax payable after the date on which the company becomes part of the group. Defined in this Act: amount , company , consolidated group , pay , provisional tax , provisional tax rules , residual income tax , tax year , Compare: 2004 No 35 s MB 30