Imputation Credit Account Note (NZ Stat Reporter)

There are two Imputation Credit Account (ICA) notes available in Stat Reporter. These are:

• Summary Imputation note: is a simple paragraph using NTD values to disclose the ICA balance this year and last year.
• Detailed Imputation note:  is a detailed analysis of Opening Balance plus and minus movements to derive the closing balance

By default, the NTD version is selected at Practice Level and the more detailed version is not selected, meaning it will not show in the list of available reports for a client. This can be changed at Practice level or for individual clients.

Detailed Imputation note

The detailed Imputation Note uses a specific account group in the Other financial accounts section.

For an AO Classic general ledger chart of the accounts, the mapping is:

• 996//80 is the Opening Balance of the ICA brought forward from last year.
• 996/81-996/89 is a range of accounts to cover other movements in the ICA, the most common of being Imputation Credits attached to Dividends paid.Note the mapping for a standard AO Classic chart.
• 631/02-631/05 are the various accounts used to capture tax paid during the year.

Imputation credits attached to Dividends paid
These are an “off balance sheet” item and can be adjusted through the use of Information accounts. For AO Classic, the entry would be:
• Credit 996/81 Imputation credits on dividends paid.
• Debit 996/99 Information accounts contra

Imputation credits attached to Dividends received
There are two ways to handle ICs on Dividends received

a) Gross up dividends received income in the Income Statement.

When dividends are received, the journal entry would be:

Credit 272 Dividends received
• Debit 631/04 Dividend withholding tax on dividends received.
• Debit 631/05 Imputation Credits on dividends received.
• Debit 600 Bank account
This approach requires no additional adjustments or mapping, will work in both the Tax Note and the Imputation Credit Account note.

b) Show the Dividends received at the net amount in the Income Statement

With this approach, dividends received are shown at the net amount received (including any withholding tax), and the difference between accounting profit and taxable income is adjusted for in the Tax Note as a permanent difference. There are several pieces here:
• The Imputation Credits on Dividends received will be loaded into an “off balance sheet” account.A
Debit 996/82 Imputation Credits on Dividends received
Credit 996/99 Contra
996/82 can be mapped to Other financial information -> Tax Note -> Non-assessible non-deductible for the Tax Note, and also to Other financial information -> Imputation -> Other for the ICA. If this is done at practice level, it will not trigger a duplicate mapping message when reports are generated.
• It is also necessary to account for the amount of Dividend Imputation Credits that can be claimed against this year’s tax:
Debit 996/90 Imputation Credits utilized this period
Credit 996/99 Contra
This will usually be the same as the amount debited to 996/82, but needs to be a different account in case there are excess Imputation Credits that cannot be utilized. 996/90 does not affect the ICA note, but will be need to be taken into account in the tax reconciliation note.
<the tax note requires change before this approach will work>