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RM 21: Refunds when loss balances used to reduce net income
or “This rule about getting refunds when using losses to lower taxable income no longer applies”
You could also call this:

“Rules for tax refunds to Māori authorities”

When you’re a Maori authority and you’re due a refund of income tax, there are some rules about how much you can get back. The refund can’t be more than the credit balance in your Maori authority credit account. This balance is checked at certain times, like the end of the tax year, when you file a return, or when you file a Maori authority credit account return.

If you get extra time to file your Maori authority credit account return, the refund is based on your credit balance at the end of the tax year for that return.

If there’s money you should get back but can’t because of these rules, it doesn’t just disappear. You can use it to pay other income tax or provisional tax you owe. If you don’t need it for that, the tax office keeps it in your account.

Sometimes, you might be able to use this extra money to pay a provisional tax instalment, if the rules say you need to pay on a certain date.

There’s also a special rule that might change how you can use this extra money, but it only applies for a limited time.

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Next up: RM 23: Limits on refunds when Maori authority stops being Maori authority

or “Refund limits for organisations no longer classified as Maori authorities”
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Part R General collection rules
Refunds: Maori authorities

RM 22Limits on refunds for Maori authorities

  1. This section applies when a Maori authority is entitled to a refund of income tax under sections RM 2, RM 4, and RM 5.

  2. The amount of the refund must be no more than the credit balance of the Maori authority in the Maori authority credit account at the latest of the following dates:

  3. the last day of the tax year that has just ended:
    1. the last day of a period for which the Maori authority is required to file a return under section 70B(1) of the Tax Administration Act 1994:
      1. the last day of a period for which the Maori authority files a Maori authority credit account return under section 70B(3) of that Act.

        1. Subsection (2) does not apply if the Maori authority has an extension of time to file its Maori authority credit account return for a tax year, and files the return with the extended time. In that case, the total amount refunded must be no more than the credit balance of the Maori authority in its Maori authority credit account on the last day of the tax year to which the return relates.

        2. If the Maori authority has a refund of income tax, and an amount paid in excess is not refunded because of the application of subsection (2) or section RM 23, the amount prevented from being a refund or transfer—

        3. is used to satisfy an income tax or provisional tax liability of the Maori authority for the tax year of the entitlement; and
          1. may be used by the Maori authority to satisfy an income tax or provisional tax liability for a tax year other than the tax year of entitlement; and
            1. is retained in the authority’s tax account with the Commissioner to the extent to which paragraphs (a) and (b) do not apply.

              1. Despite subsection (4), the amount may be credited on a provisional tax instalment date if residual income tax is treated under the Tax Administration Act 1994 as payable on the date set out in Part 7 of that Act.

              2. Section RZ 6 (Limits on refunds: transitional dates) overrides subsection (4)(b).

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              Notes
              • Section RM 22(1): amended (with effect on 1 April 2013), on , by section 93 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
              • Section RM 22(5): amended (with effect on 1 April 2008), on , by section 268(1) (and see section 268(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).