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Income Tax Act 2007

Timing and quantifying rules - Taxes and levies

EF 3: Accident compensation levies and premiums

You could also call this:

“Deducting ACC payments from your income”

When you’re an employer or self-employed person, you can deduct Accident Compensation Corporation (ACC) levies or premiums from your income. You should deduct these in the income year when they become due and payable.

Sometimes, you might have deducted an ACC levy or premium in an earlier income year before it was actually due. If the tax commissioner can’t change the assessment for that earlier year, you should deduct it in the year you were allowed to.

If your income year ends between 1 October and 6 April, and your ACC levy or premium is due on a date listed in schedule 3, part A, column H, you should treat it as if it’s due on the date in schedule 3, part A, column G for your income year.

When looking at the dates in schedule 3, part A, you need to use the exact day of the month. This day is set by the definition of instalment date and the rules about terminal tax obligations and provisional tax instalments.

ACC levies or premiums include different types of payments. These can be levies to fund the Work Account, premiums for the Employers’ Account or Self-Employed Work Account, levies for the Earners’ Account, and other special levies or premiums set by ACC laws.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514780.

Topics:
Money and consumer rights > Taxes
Work and jobs > Worker rights
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“Rules for deducting tax on employer's superannuation cash contributions”

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EF 4: Use of money interest payable by Commissioner, or

“Interest paid to you by Inland Revenue counts as income in the year you receive it”

Part E Timing and quantifying rules
Taxes and levies

EF 3Accident compensation levies and premiums

  1. A deduction that an employer or self-employed person is allowed for an Accident Compensation Corporation (ACC) levy or premium is allocated to the income year in which it becomes due and payable, except as provided in subsection (2) or (3).

  2. If a deduction for an ACC levy or premium has been allocated to an income year earlier than the income year in which the levy or premium becomes due and payable and, because of the time bar or for another reason, the Commissioner cannot lawfully amend the assessment for the income year, the deduction is allocated to the income year in which it was allowed.

  3. If a person’s income year ends on a balance date falling between 1 October and 6 April (both dates inclusive), an ACC levy or premium that is due on a date in schedule 3, part A, column H (Payment of provisional tax and terminal tax) is treated as if it were due and payable on the relevant date in schedule 3, part A, column G for the person’s corresponding income year.

  4. For the purposes of subsection (3), references to the date in schedule 3, part A, columns G and H (which refer to months only and not days) are references to the day in the relevant month that is fixed by the following:

  5. the definition of instalment date in section YA 1 (Definitions); and
    1. sections RA 3 (Terminal tax obligations), RC 1(2), and RC 20 to RC 24 (which relate to provisional tax instalments in transitional years).

      1. In this section, ACC levy or premium means any of the following levies, premiums, or penalties:

      2. the following levy or premium:
        1. a levy to fund the Work Account under section 168 of the Accident Compensation Act 2001; or
          1. an employer’s premium to fund the Employers’ Account under section 281B of the Accident Insurance Act 1998:
            1. the following levy or premium:
              1. a levy to fund the Work Account under section 168B or 211 of the Accident Compensation Act 2001; or
                1. a premium to fund the Self-Employed Work Account under section 300 of the Accident Insurance Act 1998:
                2. the following levy or premium:
                  1. a levy to fund the Earners’ Account under section 219(1) of the Accident Compensation Act 2001; or
                    1. a premium to fund the Earners’ Account under section 283(1) of the Accident Insurance Act 1998:
                    2. an Earners' Account levy under section 283(2) of the Accident Insurance Act 1998:
                      1. a levy to meet the costs of the Regulator under section 236 of the Accident Insurance Act 1998:
                        1. a contribution to the Insolvent Insurers Fund under section 246 or 247 of the Accident Insurance Act 1998:
                          1. a levy or penalty payable to the Non-Compliers Fund under section 263 of the Accident Insurance Act 1998:
                            1. a base premium under sections 466 to 470 of the Accident Insurance Act 1998.

                              Compare
                              Notes
                              • Section EF 3(5)(a)(i): amended, on , by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                              • Section EF 3(5)(b): repealed, on , by section 49 of the Accident Compensation Amendment Act 2010 (2010 No 1).
                              • Section EF 3(5)(c)(i): amended, on , by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                              • Section EF 3(5)(d)(i): amended, on , by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                              • Section EF 3(5)(e): substituted, on , by section 49 of the Accident Compensation Amendment Act 2010 (2010 No 1).