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EH 73: Refund for development or recovery
or “Refund options for forest thinning income equalisation accounts”
You could also call this:

“Refunds for development or recovery are counted as income”

If you get a refund for development or recovery, it’s counted as income. The income is usually counted in the year when the Commissioner receives your application for the refund.

But you can choose to have the income counted in a different year. To do this, you need to apply for the refund within a certain time period for an accounting year. You also need to say in your application that you want the refund to be income in that accounting year.

If you do this, the refund will be counted as income in the year that matches the time period you chose.

In both cases, the refund is treated as income under section CB 27, which is about income equalisation schemes.

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Next up: EH 75: Refund on liquidation

or “Getting your thinning operations income equalisation account refunded when your business is liquidated”
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Part E Timing and quantifying rules
Income equalisation schemes: Refunds: on application

EH 74Income when refund given for development or recovery

  1. A refund under section EH 73 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 derived in the corresponding income year to which the specified period or the longer period relates.

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      Notes
      • Section EH 74 list of defined terms apply: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).