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EH 71: Refund on application
or “How to request a refund from your thinning operations income equalisation account”
You could also call this:

“Refunds from applications can count as income in different tax years”

When you get a refund under [section EH 71], it counts as income under [section CB 27]. You earn this income in the tax year when the Commissioner receives your application for the refund.

There’s an exception to this rule. If you apply for a refund during a specific time period for an accounting year (or a longer period if the Commissioner allows), you can choose to have the refund counted as income in that accounting year instead. To do this, you need to state your choice in your refund application.

If you make this choice, the refund will be considered income under [section CB 27] in the tax year that matches the accounting year you’ve chosen.

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Next up: EH 73: Refund for development or recovery

or “Refund options for forest thinning income equalisation accounts”
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Part E Timing and quantifying rules
Income equalisation schemes: Refunds: on application

EH 72Income when refund given on application

  1. A refund under section EH 71 is income, under section CB 27 (Income equalisation schemes), derived by the person in the income year in which the Commissioner receives the application for the refund.

  2. However, subsection (3) applies instead of subsection (1) if—

  3. the Commissioner receives the application for a refund in the specified period for an accounting year or, if the Commissioner allows in a case or class of cases, within a longer period; and
    1. the person chooses in the application that the refund is to be income in the accounting year to which the specified period or the longer period relates.

      1. The refund is income under section CB 27 in the corresponding income year to which the specified period or the longer period relates.

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      Notes
      • Section EH 72 heading: amended, on , by section 25(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
      • Section EH 72 list of defined terms apply: inserted, on , by section 25(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).