Section RC 32 — Income Tax Act 2007: Wholly-owned groups of companies

RC 32 Wholly-owned groups of companies When this section applies (1) This section applies for the purposes of the provisional tax rules and Part 7 of the Tax Administration Act 1994 in relation to a company ( company A ) that is in a tax year part of a wholly-owned group of companies that includes another company ( company B ). Sections RM 13 to RM 17 (which relate to refunds) override this section. Company A transferring overpayment to company B (2) If, for a tax year, company A has paid an amount that is more than the provisional tax payable for the tax year, the company may transfer some or all of the overpayment to company B to the extent to which the amount of provisional tax paid by company B is less than their residual income tax for the tax year. Company A must notify the Commissioner under subsection (4). When transfer made (3) Company A may transfer an amount under subsection (2) on or after the later of— (a) the day on which company A overpays the provisional tax; or (b) the day on which the first instalment of provisional tax for the tax year becomes payable by company B. Notice (4) A notice under subsection (2) must— (a) name company B, and the amount to be transferred; and (b) state the date on which the overpayment is treated as transferred to company B; and (c) be given to the Commissioner within— (i) the time for providing a return of income for the tax year for company B; or (ii) an extension of time allowed by the Commissioner. When transfer made, and how transfer treated (5) For the purposes of this section,— (a) a transfer under subsection (2) is treated as made on the date stated in the notice; and (b) provisional tax transferred by company A to company B is treated as provisional tax paid by company B and not by company A. Defined in this Act: amount , Commissioner , company , notice , notify , pay , provisional tax , provisional tax rules , residual income tax , return of income , tax year , wholly-owned group of companies , Compare: 2004 No 35 s MB 33