Remedial amendments: Branch equivalent tax accounts of companies

Remedial amendment Act applying to income years beginning on/after 1 Jul 2009 changes branch equivalent tax accounts to ensure they cannot go into credit.

Sections OE 6, OE 9, OP 100 and OP 103

The Act makes minor changes to branch equivalent tax accounts (BETAs) to ensure that these cannot go into credit.

Following the changes in the Taxation (International Taxation, Life Insurance, and
Remedial Matters) Act 2009, all credit balances in branch equivalent tax accounts of companies (BETAs) were cancelled.

However, debit balances remained for a transitional period of two years. As these debit balances are used, credits are put into the account to cancel them out.

Minor changes to the rules are included in the new legislation to ensure that BETAs cannot go back into an overall credit balance as a result of these credits.

Credits arising under sections OE 6, OE 9, OP 100 and OP 103 are now limited to the amount of an overall debit balance in the account at the time.

Application date

The remedial amendment applies to income years beginning on or after 1 July 2009.