Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Tax credits paid in cash - General provisions

MA 4: Calculation of amounts of credit producing negative amounts

You could also call this:

“Handling negative results when calculating tax credits”

If you try to calculate a tax credit or part of a tax credit using the rules in this part of the law, and you get a negative number as the result, you should treat that number as zero instead. This means you can’t have a negative tax credit. If your calculation shows you owe money instead of getting a credit, the law says to just set the credit amount to zero.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518413.

Topics:
Money and consumer rights > Taxes
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MA 3: Excluded income, or

“Money you get from tax credits doesn't count as income for tax purposes”

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MA 5: Advice from outside agencies, or

“Commissioner can seek advice from other agencies about tax credits”

Part M Tax credits paid in cash
General provisions

MA 4Calculation of amounts of credit producing negative amounts

  1. If a calculation under this Part produces a result that is negative for the amount of a tax credit or the amount of a component of a credit, the amount of the credit or component is zero.

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