Question of the Month: September 2025

My client’s business has associated entities. Can they deposit under one entity and redistribute funds to the other group companies at year-end?

Yes, they can.

For companies that were members of the group at the time the deposit was made by your client’s business and share at least 66% common ownership, transfers can be made to their accounts at Inland Revenue (IR) at any time if their filing requirements for that tax year have been met. This includes transfers for non-income tax types. 

If a company was outside the group at the time your client’s business made the deposit, or does not meet the common ownership test, these funds can still be transferred to their IR account. However, transfers can only be used to settle income tax liabilities and must be completed within the tax pooling legislative deadline for that year (i.e. no later than 75 days past the terminal tax date for the company requiring the funds).

Please contact us to discuss if you have any specific questions.