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EH 4: Main deposit
or “Depositing money into your main income equalisation account for farmers, fishers, and foresters”
You could also call this:

“Account for storing and managing income deposits for tax purposes”

The Commissioner will keep a main income equalisation account for you if you make a deposit. Any deposits you make will be put into this account. The only things that can go into your account are deposits you make and interest paid under section EH 6.

While money is in your account, you can’t give it to someone else or use it as security for a loan. No one else can take control of it, even if they say you owe them money. The only exceptions are if you go bankrupt or your company is closed down. The money in your account can’t be used to pay your debts, except in those same situations. It also can’t be used to pay debts after you die.

The only way to take money out of your account is through refunds. These refunds are described in several sections of the law, including sections EH 8, EH 10, EH 13, EH 15, EH 17, EH 19, EH 23, EH 25, EZ 80, and EZ 81.

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Next up: EH 6: Interest on deposits in main income equalisation account

or “Earning interest on deposits in a main income equalisation account”
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Part E Timing and quantifying rules
Income equalisation schemes: Deposits and accounts

EH 5Main income equalisation account

  1. The Commissioner must keep a main income equalisation account in the name of every person who makes a deposit with the Commissioner.

  2. Every deposit a person makes with the Commissioner must be entered in the person’s main income equalisation account.

  3. The only amounts that may be entered in a person’s main income equalisation account are—

  4. deposits made by the person with the Commissioner; and
    1. interest paid under section EH 6.

      1. Despite section FC 2 (Transfer at market value), amounts entered in a person’s main income equalisation account must not, while they are in the account,—

      2. be assigned or charged in any way; or
        1. pass by operation of law to, or into the custody or control of, someone else, except when the person is bankrupt or has been put into liquidation; or
          1. be assets for the payment of the person’s debts or liabilities, except when the person is bankrupt or has been put into liquidation; or
            1. be assets for the payment of the debts or liabilities of a dead person’s estate.

              1. The only payments that may be made from a person’s main income equalisation account are refunds under any of sections EH 8, EH 10, EH 13, EH 15, EH 17, EH 19, EH 23, EH 25, EZ 80, and EZ 81.

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              Notes
              • Section EH 5(5): amended, on , by section 37 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).