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Income Tax Act 2007

Tax credits and other credits - Tax credits for imputation credits

LE 3: Use of remaining credits by others

You could also call this:

“Carrying forward unused tax credits to the next year”

If you have a tax credit left over after a tax year, and you’re not someone mentioned in [section LE 2(2)] or a life insurer, you can use this credit in a special way. You can carry it forward to the next tax year. This means you can save it and use it later.

However, the amount of credit you can carry forward might be reduced. The Commissioner of Inland Revenue can decrease your credit under [section 177C] of the Tax Administration Act 1994. If this happens, the amount that’s reduced is considered to be used up and can’t be used again.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518034.

Topics:
Money and consumer rights > Taxes
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LE 2B: Use of remaining credits by life insurer on policyholder base, or

“How life insurers can use leftover policyholder tax credits as deductions”

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LE 4: Trustees for minor beneficiaries, or

“Special tax rules for trustees managing income for young beneficiaries”

Part L Tax credits and other credits
Tax credits for imputation credits

LE 3Use of remaining credits by others

  1. This section applies when a person other than a person referred to in section LE 2(2) or a life insurer has an amount of tax credit remaining for a tax year under section LA 5(4) (Treatment of remaining credits).

  2. The amount may be carried forward to the next tax year as a credit carried forward.

  3. The person’s credit is reduced by an amount equal to the amount carried forward and extinguished by the Commissioner under section 177C of the Tax Administration Act 1994.

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Notes
  • Section LE 3(1): amended, on , by section 327(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section LE 3 list of defined terms life insurer: inserted, on , by section 327(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).