Helpful guide simplifies ICs and tax pooling transactions

Krystle Brough (left), Client Director, and Tara Daly, Experiential Marketing Manager

 

Sometimes trying to figure out your clients’ imputation credit account (ICA) position following their tax pooling transactions can be like assembling furniture with instructions written in ancient hieroglyphics – complex.

 

But don’t worry. We’ve got you covered.

 

Our Imputation Credit Guide sets out the potential impacts of your clients' tax pooling transactions to help you complete an IR4J in record time.

 

How does the Imputation Credit Guide simplify my workflow?

 

Our guide shows the effective imputation date of various tax pooling transactions and groups these into the following three categories:

 

1. Confirmed current period credits

 

In this section, you'll see credits that impact the selected period, including:

  • Deposits recognised on the day of deposit
  • Purchased funds on the day of transfer to Inland Revenue (IR)
  • Offsetting credits arising on the sale of purchased funds held in the pool
  • The buy side of funds swapped and transferred to IR.

 

2. Debits that may apply to the selected period

 

In this section, you'll see debits that may apply to the selected period or another period depending on the imputation credit balance at the prior 31 March, including:

  • Sales and refunds of tax
  • The sale side of swaps transactions
  • Transfers to associated taxpayers.

 

3. Unrecognised current period credits

 

In this section, you'll see purchased funds that are still held in the pool (i.e. they haven’t been transferred to your client’s IR account and therefore cannot be recognised).

 

Sounds great. Where do I find the Imputation Credit Guide?

 

You can access this guide via the ‘Reports’ dropdown menu of your taxpayer dashboard on the Tax Traders portal.

 

Additional resources

 

While you are using our Imputation Credit Guide, don't forget to check out our Knowledge Base article for more information on tax pooling and imputation credits. 

 

Here you'll find an FAQ as well as a handy factsheet that explains when your clients' tax pooling transactions can be recognised in the ICA. 

 

Need help?

 

As always, the Tax Traders team is here and ready to help you deliver the best outcome for your clients.

 

Feel free to contact us on 0800 829 872 or team@taxtraders.co.nz if you have any further questions about the potential impact of tax pooling transactions on your clients' ICA.