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Income Tax Act 2007

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

EH 19: Refund on death

You could also call this:

“Money in your income equalisation account goes to your estate when you die”

If you have a main income equalisation account and you die, the Commissioner will refund the money in your account to the trustee of your estate. This happens no matter how long the money has been in the account. The refund is made when the deposit ends. The amount refunded is whatever is in the account on that date. However, section EH 28 might change this rule in some cases.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514860.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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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”

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EH 20: Income when refund given on death, or

“Refunds after death may count as income”

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

EH 19Refund on death

  1. This section applies when a person—

  2. has a main income equalisation account; and
    1. dies.

      1. Despite section FC 2 (Transfer at market value), the Commissioner must refund to the trustee of the person’s estate the amount that, on the date the deposit ends, is in the person’s 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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