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Income Tax Act 2007

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

EH 20: Income when refund given on death

You could also call this:

“Refunds after death may count as income”

If you die and get a refund under [section EH 19], this refund is considered as income you earned just before you died. This income is covered by [section CB 27], which talks about income equalisation schemes.

But there’s an exception to this rule. If your situation matches what’s described in [section EH 21] or [section EH 22], then those sections will apply instead of the first rule. These sections might have different ways of handling the refund in special 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=DLM1514862.

Topics:
Money and consumer rights > Taxes
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EH 19: Refund on death, or

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

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EH 21: Income when refund given on death, and election to allocate amount to earlier year, or

“Handling tax refunds after death: Trustees can allocate income to earlier years”

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

EH 20Income when refund given on death

  1. A refund under section EH 19 is income, under section CB 27 (Income equalisation schemes), derived by the person immediately before their death.

  2. However, section EH 21 or EH 22 applies instead of subsection (1) if the circumstances described in section EH 21(1) or EH 22(1) apply in the person’s case.

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