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New Zealand law explained for everyone

Income Tax Act 2007

Tax credits paid in cash - General provisions

MA 6: Avoidance arrangements

You could also call this:

“Rules against unfairly arranging your affairs to get more tax credits or pay less tax”

You need to be aware that there are rules about trying to avoid paying taxes or getting more tax credits than you should. The government has put these rules in place to make sure everyone is fair when it comes to taxes and credits.

If you try to set up special arrangements to get more tax credits for your family, the government might reduce the amount of credit you can get. This applies to tax credits that are described in parts MB to MG and MZ of the tax law.

There’s also a special rule for something called FamilyBoost tax credits. If you try to arrange things to get more of these credits than you should, the government might reduce how much you can get. This rule is found in part MH of the tax law.

Remember, it’s important to be honest when you’re dealing with taxes and tax credits. If you’re not sure about something, it’s a good idea to ask for help from someone who knows about tax rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518417.

Topics:
Money and consumer rights > Taxes
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“Commissioner can seek advice from other agencies about tax credits”

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MA 7: Meaning of full-time earner and earner for family scheme, or

“Defining who qualifies as a full-time worker or earner for family tax credits”

Part M Tax credits paid in cash
General provisions

MA 6Avoidance arrangements

  1. Section GB 44 (Arrangements involving tax credits for families) may apply to reduce a tax credit under subparts MB to MG and MZ.

  2. Section GB 44B (Arrangements involving FamilyBoost tax credits) may apply to reduce a tax credit under subpart MH (FamilyBoost tax credits).

Notes
  • Section MA 6(1) heading: inserted, on , by section 13(1) of the Taxation (Budget Measures) Act 2024 (2024 No 19).
  • Section MA 6(1): amended, on , by section 8 of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
  • Section MA 6(1): amended, on , by section 454 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
  • Section MA 6(2) heading: inserted, on , by section 13(2) of the Taxation (Budget Measures) Act 2024 (2024 No 19).
  • Section MA 6(2): inserted, on , by section 13(2) of the Taxation (Budget Measures) Act 2024 (2024 No 19).