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New Zealand law explained for everyone

Income Tax Act 2007

Tax credits paid in cash - Tax credits for KiwiSaver schemes and complying superannuation funds

MK 7: Amounts paid in excess

You could also call this:

“What happens when you get more tax credit than you should”

If you receive more money than you should have as a tax credit, the fund provider can take action. Even though there are rules about how tax credits are paid, the fund provider can still use the extra amount to fix the mistake. They are allowed to take money from your account to pay back the extra amount to the Commissioner. This helps make sure that you only get the right amount of tax credit that you’re supposed to have.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518617.

Topics:
Money and consumer rights > Taxes
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MK 6: Credit given by fund providers, or

“Fund providers immediately add your tax credit to your KiwiSaver or superannuation investments”

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MK 8: Treatment of tax credits on permanent emigration, or

“What happens to KiwiSaver tax credits when you leave New Zealand permanently”

Part M Tax credits paid in cash
Tax credits for KiwiSaver schemes and complying superannuation funds

MK 7Amounts paid in excess

  1. Despite section MK 6, a fund provider is treated as having the amount of a tax credit paid under section MK 3 for the purposes of recovering any amount paid in excess of that properly payable. For the purposes of this section, the fund provider may subtract an amount from a person’s account to pay the Commissioner the excess amount.

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