Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

General collection rules - Refunds

RM 2: Refunds for overpaid tax

You could also call this:

“Getting money back when you've paid too much tax”

You can get a refund if you’ve paid too much tax. The Commissioner of Inland Revenue must give you a refund if:

  1. You’ve paid more tax than you needed to under this part of the law.
  2. The extra payment happened because of your first tax assessment or a specific type of changed assessment.
  3. The Commissioner knows you’re entitled to the refund.

For other types of changed assessments, you can get a refund if:

  1. You’ve paid more tax than needed.
  2. The Commissioner knows you’re entitled to it within certain time limits. These limits depend on the type of tax and can be 4 or 7 years, or longer in some cases.

If you file a return for an ancillary tax (a tax that’s not income tax), it’s treated like you’ve made an assessment of that tax.

Refundable tax credits are also included in the amount of tax that can be refunded.

There’s a special rule for refunds related to some social rehabilitation payments from 2008 to 2018.

This law uses simple terms to explain when and how you can get a tax refund if you’ve paid too much.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520416.

Topics:
Money and consumer rights > Taxes
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RM 1: What this subpart does, or

“This section outlines rules for tax refunds and their usage”

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RM 3: Refunds for overpaid FDP, or

“Rules for refunding excess foreign dividend payments have been removed”

Part R General collection rules
Refunds

RM 2Refunds for overpaid tax

  1. The Commissioner must refund an amount of tax that a person has paid if—

  2. the amount is more than the tax required to be paid by the person under this Part; and
    1. the amount has arisen on an original assessment or an amended assessment referred to in subsection (3); and
      1. the Commissioner is satisfied, or has received notice, that the person is entitled to the refund.

        1. The Commissioner must refund an amount of tax that a person has paid if—

        2. the amount is more than the tax required to be paid by the person under this Part; and
          1. the amount has arisen on an amended assessment other than an amended assessment referred to in subsection (3); and
            1. the Commissioner is satisfied, or receives notice, that the person is entitled to the refund before the end of—
              1. for income tax, the 4-year period under section 108(1) of the Tax Administration Act 1994 for amendment of an assessment, if subparagraphs (ic) and (ii) do not apply; or
                1. for an ancillary tax or approved issuer levy, the 4-year period under section 108(1C) of that Act for amendment of an assessment, if subparagraphs (ic) and (ii) do not apply; or
                  1. the 7-year period under section GC 13(6) (Calculation of arm’s length amounts) for amendment of an assessment, if that subsection applies; or
                    1. the extended period allowed by the Commissioner under section 78B of that Act, if the Commissioner exercises the discretion under that section.

                    2. For the purposes of this section, the provision by a person of a return for an amount of an ancillary tax for a period is treated as the making of an assessment of the amount of the ancillary tax by the person.

                    3. An amount of tax under subsection (1) includes an amount of a refundable tax credit to which section LA 5(5) (Treatment of remaining credits) applies.

                    4. Repealed

                    5. Subsection (1A) applies for an amended assessment arising from the treatment of a payment as being exempt income under section CZ 36 (Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years).

                    Compare
                    Notes
                    • Section RM 2(1A) heading: inserted (with effect on 1 April 2008), on , by section 263(1) (and see section 263(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                    • Section RM 2(1A): inserted (with effect on 1 April 2008), on , by section 263(1) (and see section 263(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                    • Section RM 2(1A)(b): amended (with effect on 1 April 2008), on , by section 78(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                    • Section RM 2(1)(ab): inserted (with effect on 1 April 2008), on , by section 263(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                    • Section RM 2(1)(ab): amended (with effect on 1 April 2008), on , by section 78(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                    • Section RM 2(1)(b): replaced (with effect on 1 April 2013 and applying to overpayments for the 2013–14 and later tax years), on , by section 87(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                    • Section RM 2(1)(b)(i): replaced (with effect on 3 May 2016), on , by section 264 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                    • Section RM 2(1)(b)(ib): replaced (with effect on 3 May 2016), on , by section 264 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                    • Section RM 2(1)(b)(ic): inserted (with effect on 3 May 2016), on , by section 264 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                    • Section RM 2(1BA) heading: inserted, on , by section 165(1) (and see section 165(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                    • Section RM 2(1BA): inserted, on , by section 165(1) (and see section 165(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                    • Section RM 2(1B) heading: inserted (with effect on 1 April 2008), on , by section 541(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                    • Section RM 2(1B): inserted (with effect on 1 April 2008), on , by section 541(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                    • Section RM 2(2) heading: replaced (with effect on 1 April 2008), on , by section 263(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                    • Section RM 2(2) heading: repealed (with effect on 1 April 2013 and applying to overpayments for the 2013–14 and later tax years), on , pursuant to section 87(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                    • Section RM 2(2): repealed (with effect on 1 April 2013 and applying to overpayments for the 2013–14 and later tax years), on , by section 87(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                    • Section RM 2(3) heading: inserted (with effect on 1 April 2008), on , by section 78(3) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                    • Section RM 2(3): inserted (with effect on 1 April 2008), on , by section 78(3) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                    • Section RM 2 list of defined terms amount: inserted, on , by section 165(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                    • Section RM 2 list of defined terms ancillary tax: inserted, on , by section 165(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                    • Section RM 2 list of defined terms notice: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                    • Section RM 2 list of defined terms refundable tax credit: inserted (with effect on 1 April 2008), on , by section 541(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).