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Income Tax Act 2007

Timing and quantifying rules - Income equalisation schemes - Refunds: on application

EH 14: Income when refund given on application

You could also call this:

“Refunds from applications can be counted as income in different tax years”

When you get a refund under [section EH 13], it counts as income under [section CB 27]. This income is usually counted in the tax year when the Commissioner receives your application for the refund.

But there’s a special case. If you apply for a refund during a specific time period for an accounting year (or a longer period if the Commissioner allows it), you can choose to count the refund as income in that accounting year instead. To do this, you need to say in your application that you want the refund to be income in that specific accounting year.

If you make this choice, the refund will be counted as income under [section CB 27] in the accounting year you chose, not in the year when you applied for the refund.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514850.

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Money and consumer rights > Taxes
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Part E Timing and quantifying rules
Income equalisation schemes: Refunds: on application

EH 14Income when refund given on application

  1. A refund under section EH 13 is income, under section CB 27 (Income equalisation schemes), derived by the person and is allocated to the income year in which the Commissioner receives the application for the refund.

  2. However, subsection (3) applies instead of subsection (1) if—

  3. the Commissioner receives the application for a refund in the specified period for an accounting year or, if the Commissioner allows in a case or class of cases, within a longer period; and
    1. the person chooses in the application that the refund is to be income in the accounting year to which the specified period or the longer period relates.

      1. The refund is income, under section CB 27, and is allocated to the income year to which the specified period or the longer period relates.

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      Notes
      • Section EH 14 heading: amended, on , by section 19(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
      • Section EH 14 list of defined terms apply: inserted, on , by section 19(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).