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Income Tax Act 2007

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

EH 23: Refund on bankruptcy

You could also call this:

“What happens to your income equalisation account if you go bankrupt”

If you have a main income equalisation account and you go bankrupt, the Commissioner will give all the money in your account to the Official Assignee. The Official Assignee is the person in charge of your property when you’re bankrupt. It doesn’t matter how long the money has been in your account. The Commissioner will give it all to the Official Assignee on the day your deposit ends. However, Section EH 28 can change this rule.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514868.

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“Trustee can move deceased's income equalisation refund to later years”

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EH 24: Income when refund given on bankruptcy, or

“Refunds received before bankruptcy are taxable income”

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

EH 23Refund on bankruptcy

  1. This section applies when a person—

  2. has a main income equalisation account; and
    1. is bankrupt.

      1. The Commissioner must refund to the Official Assignee having charge 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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