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EH 24: Income when refund given on bankruptcy
or “Refunds received before bankruptcy are taxable income”
You could also call this:

“Getting your income equalisation account money back if your business is liquidated”

If you have a main income equalisation account and you are put into liquidation, this law applies to you. When this happens, the Commissioner must give back all the money in your account to the person in charge of your liquidation (called the liquidator). The Commissioner has to do this no matter how long the money has been in your account. However, there’s another rule in [Section EH 28] that might change this in some cases.

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Next up: EH 26: Income when refund given on liquidation

or “Refunds during business liquidation count as income”
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Part E Timing and quantifying rules
Income equalisation schemes: Refunds: on application

EH 25Refund on liquidation

  1. This section applies when a person—

  2. has a main income equalisation account; and
    1. is put into liquidation.

      1. The Commissioner must refund to the liquidator appointed for the person 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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