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Income Tax Act 2007

Timing and quantifying rules - Income equalisation schemes - Tax credit

EH 31: Kind and amount of refund that entitles person to tax credit

You could also call this:

“Tax credit eligibility for certain refunds from past accounting years”

You can get a tax credit if you receive a refund from certain parts of the Income Tax Act. This refund must come from money you put in during a different accounting year, not the current one. If part of the refund is from the current year and part from another year, only the part from the other year counts for the tax credit.

The amount of tax credit you can get is the smaller of two things. It’s either the amount of refund you got from specific sections of the law, or the total amount your income was reduced by in earlier years when you made the deposits that led to this refund.

The sections of the law that allow these refunds are EH 10, EH 13, EH 15, EH 17, EH 19, EH 22(3), EH 23, and EH 25.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514886.

Topics:
Money and consumer rights > Taxes
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EH 30: When person entitled to tax credit, or

"When you can get a tax credit for a refund"

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EH 32: Kind of person entitled to tax credit, or

"Who can get a tax credit for certain refunds"

Part E Timing and quantifying rules
Income equalisation schemes: Tax credit

EH 31Kind and amount of refund that entitles person to tax credit

  1. A refund that entitles a person to a tax credit is 1 to which both the following apply:

  2. the refund is given under any of sections EH 10, EH 13, EH 15, EH 17, EH 19, EH 22(3), EH 23, and EH 25; and
    1. the refund does not come from a deposit made for the accounting year in which the refund is given; if the refund comes in part from a deposit made for the accounting year in which the refund is given and in part from a deposit made for some other accounting year, the refund that entitles the person to a tax credit is the part coming from the deposit for some other accounting year.

      1. Once a refund qualifies under subsection (1) as a refund that entitles a person to a tax credit, the amount of the refund is the lesser of the following:

      2. the amount of the refund given to the person under any of sections EH 10, EH 13, EH 15, EH 17, EH 19, EH 22(3), EH 23, and EH 25; and
        1. the total of the amounts by which the person’s income was reduced in 1 or more earlier accounting years by subtracting the deposit or deposits or parts of deposits from which the refund comes.

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