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Income Tax Act 2007

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

EH 17: Refund on retirement

You could also call this:

“Farmers and fishers can get their income equalisation account refunded when they retire”

If you are a farmer or fisher with a main income equalisation account, and you are not a company or trustee, you can get a refund when you retire from your farming, agricultural, or fishing business. When you retire, the government will give you back all the money in your account, no matter how long it has been there. However, there is an exception to this rule, which you can find in Section EH 28.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514856.

Topics:
Money and consumer rights > Taxes
Environment and resources > Farming and fishing
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EH 16: Income when refund given for development or recovery, or

“Refunds for development or recovery are counted as income”

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EH 18: Income when refund given on retirement, and election to allocate amount to earlier year, or

“Refund on retirement: choose to count earlier deposits as income in the year you made them”

Part E Timing and quantifying rules
Income equalisation schemes: Refunds: on application

EH 17Refund on retirement

  1. This section applies when a farmer or a fisher—

  2. has a main income equalisation account; and
    1. is neither a company nor a trustee; and
      1. retires from the farming or agricultural business or the fishing business.

        1. The Commissioner must refund to the person the amount that, on the date the deposit ends, is in their main income equalisation account, regardless of the length of time it has been in the account. Section EH 28 overrides this subsection.

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