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Income Tax Act 2007

Tax credits paid in cash - Entitlements under family scheme

MC 11: Relationship periods and entitlement periods

You could also call this:

“Time periods for determining tax credit eligibility”

In the Income Tax Act 2007, there are two important terms you need to know about when it comes to tax credits paid in cash: relationship periods and entitlement periods.

A relationship period is an unbroken stretch of time in a tax year. It can be the whole tax year or just part of it.

An entitlement period is a bit different. It’s a time within a relationship period when you meet certain ongoing requirements. These requirements are set out in another part of the law called section MC 8.

Sometimes, a single day might seem to be part of more than one entitlement period or relationship period. When this happens, the Commissioner (that’s the person in charge of taxes) will decide which period that day belongs to. They’ll try to make this decision as fair as possible.

These definitions apply to several parts of the law, specifically subparts MB to MG and MZ.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518498.

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Money and consumer rights > Taxes
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Part M Tax credits paid in cash
Entitlements under family scheme

MC 11Relationship periods and entitlement periods

  1. In subparts MB to MG and MZ,—

  2. a relationship period means an unbroken period in a tax year, whether the period consists of some or all of the days in the tax year:
    1. an entitlement period, for a person, means a period that forms all or part of a relationship period during which the person meets the continuing requirements set out in section MC 8.

      1. If a day is part of more than 1 entitlement period or 1 relationship period, the day is treated as part only of the particular period that the Commissioner determines is fair in the circumstances.

      Compare
      Notes
      • Section MC 11(1): amended, on , by section 16 of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).