Imputation credit account (ICA)

Modified on Wed, 01 May 2024 at 03:07 PM

The Imputation credit account is automatically populated based on data from workpapers in TaxLab. Other transactions can be added directly to the Imputation Credit Account workpaper.

To access the Imputation Credit Account, go to Workpapers > Imputation Credit Account.

To turn off the Imputation Credit Account, within the entity’s Income tax return, click the Settings tab > Settings. Then in the Return Settings section, from the Imputation Credit Account drop-down list, select Yes or No.

First year

If this is your first year using TaxLab, record the opening balance as part of the prior year so that it is disclosed as an opening balance on the tax return.

  1. Go to Workpapers > Imputation Credit Account.
  2. Click New to add a new transaction.
  3. Update the date to the end of the last imputation year. 
  4. Select Historic ICA balance as the transaction type.
  5. Enter the amount and click Save.

Data from Workpapers

The imputation credits and RWT credits recorded on the following workpapers flow through to the imputation credit account based on the date of the transaction:

  • Dividend income
  • Interest income

Non-standard balance dates

If the taxpayer has a non-standard balance date and the imputation credits or RWT need to be split into amounts received before 31 March and amounts received after 1 April for imputation credit account purposes, add a breakdown to the relevant income account.

In the breakdown, split it into two items being “Income received before 31 March” and “Income received after 1 April” and split the income accordingly. On each line, add a workpaper and enter a date of 31 March (or 1 April or balance date) and populate the workpapers with the relevant credits. These will now be reflected in the correct year’s imputation credit account based on the date paid in each workpaper.

Add an ICA transaction

Transactions can also be added directly to the Imputation credit account (such as shareholder continuity change, other credits, other debits) :

  1. Go to Workpapers > Imputation Credit Account.
  2. Click New.
  3. Update the date, transaction type, amount.
  4. Based on the transaction type, the Imputation credit account disclosure is automatically selected. This can be updated if required. 
  5. Optional: add a note.
  6. Click Save.

Delete an ICA transaction

  1. On the Imputation credit account workpaper, locate the transaction you want to delete.
  2. Click on the transaction to open it.
  3. Click Delete.

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