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EH 15: Refund for development or recovery
or “Getting money back from your income equalisation account for business improvements or emergencies”
You could also call this:

“Refunds for development or recovery are counted as income”

If you get a refund under section EH 15 for development or recovery, it counts as income. This income is considered to be earned in the tax year when the Commissioner gets your application for the refund. The refund is treated as income under section CB 27.

You have another option, though. If you apply for the refund within a specific time frame for an accounting year, or within a longer period if the Commissioner allows it, you can choose to have the refund counted 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 the accounting year that matches the specified or longer period.

If you choose this option, the refund will still be considered income under section CB 27, but it will be assigned to the income year that matches the specified or longer period you chose.

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Next up: EH 17: Refund on retirement

or “Farmers and fishers can get their income equalisation account refunded when they retire”
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Part E Timing and quantifying rules
Income equalisation schemes: Refunds: on application

EH 16Income when refund given for development or recovery

  1. A refund under section EH 15 is income, under section CB 27 (Income equalisation schemes), derived by the person in 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 16 list of defined terms apply: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).