Groups of New Zealand companies can elect to form an imputation group if they meet certain eligibility criteria. This allows eligible wholly owned groups of Australian and/or New Zealand companies to group for imputation purposes only.
Groups with both Australian and New Zealand members are known as Trans-Tasman imputation groups (TTIGs).
Elections apply from the beginning of the imputation year in which they are received.
Consolidated groups can elect to become part of an imputation group, but only if the entire consolidation group join.
Imputation grouping requires New Zealand companies within a Trans-Tasman imputation group to maintain a separate 'resident imputation subgroup' account. This account will have different accounting transactions to the TTIG.
All companies in the imputation group will be jointly and severally liable for any default of further income tax, civil penalties and interest.
Groups will be allocated a group representative IRD number for annual imputation returns to be filed under. Group members, where required, will still need to file their own income tax returns and fulfil all other tax obligations as normal.
The group will need to elect a 'nominated company' who will be the point of contact and have responsibility for return filing. For Trans-Tasman imputation groups, the nominated company must be a New Zealand resident. The company will also be responsible for keeping the 'resident imputation subgroup account' and filing its imputation return should the account go into debit an imputation year end.