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Income Tax Act 2007

Avoidance and non-market transactions - Avoidance: specific

GB 44: Arrangements involving tax credits for families

You could also call this:

“Rules to prevent unfair arrangements for family tax credits”

This law is about making sure people don’t try to get more tax credits for families than they should. If you enter into an arrangement that’s meant to make the tax credit rules work better for you than they normally would, the tax department can step in. They can reduce your tax credits to what they think you should have gotten if you hadn’t made that arrangement. This applies to all the rules about tax credits for families.

When the tax department decides to reduce your tax credits, they’ll look at what would have happened if you hadn’t tried to get extra benefits. They’ll then give you the amount of tax credits they think is fair based on your real situation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517030.

Topics:
Money and consumer rights > Taxes
Family and relationships > Children and parenting
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“Rules against misusing FamilyBoost tax credits”

Part G Avoidance and non-market transactions
Avoidance: specific

GB 44Arrangements involving tax credits for families

  1. This section applies if both of the following paragraphs are met:

  2. a person enters into an arrangement:
    1. a purpose of the arrangement is that subparts MA to MG and MZ (which relate to tax credits for families) has a more favourable effect than would otherwise have occurred.

      1. A tax credit under subparts MA to MG and MZ is reduced to the amount that the Commissioner considers would have arisen had the arrangement not occurred.

      Compare
      Notes
      • Section GB 44 heading: amended, on , by section 408(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
      • Section GB 44(1)(a): replaced, on , by section 80(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
      • Section GB 44(1)(b): amended, on , by section 4(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
      • Section GB 44(1)(b): amended, on , by section 80(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
      • Section GB 44(2): amended, on , by section 4(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
      • Section GB 44(2): amended, on , by section 80(3) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).