Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Income equalisation schemes - Tax credit

EH 32: Kind of person entitled to tax credit

You could also call this:

“Who can get a tax credit for certain refunds”

You can get a tax credit in certain situations. This happens when you receive a refund in your accounting year that is described in section EH 31(1) and meets the amount in section EH 31(2). This refund increases your income tax bill for that tax year. However, you only get the tax credit if the increase in your tax bill (called the ‘extra tax’) is more than the total amount your tax was reduced in previous years because of the deposits that led to this refund (called the ‘tax saving’). Essentially, if you’re paying more tax now than you saved before, you can get a tax credit to help balance things out.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514888.

Topics:
Money and consumer rights > Taxes
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EH 31: Kind and amount of refund that entitles person to tax credit, or

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

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EH 33: Amount of tax credit, or

“How much tax credit you can get for paying more extra tax than you save”

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

EH 32Kind of person entitled to tax credit

  1. A person in the following circumstances is entitled to a tax credit:

  2. the person’s income in the accounting year in question includes a refund of the kind described in section EH 31(1) and of the amount described in section EH 31(2); and
    1. because of the refund, the person’s income tax liability for the tax year corresponding to the accounting year is increased; and
      1. the amount by which the person’s income tax liability for the corresponding tax year is increased because of the refund (the extra tax) is more than the total of the amounts by which the person’s income tax liability for an earlier tax year or years was decreased because of the subtraction of the deposit or deposits or parts of deposits from which the refund comes (the tax saving).

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