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Income Tax Act 2007

General collection rules - Refunds - Qualifying companies

RM 32: Application of sections RM 13 to RM 17 to qualifying companies

You could also call this:

“Rules for tax refunds and overpayments for qualifying companies”

If you’re part of a qualifying company, you should know that sections RM 13 to RM 17 usually don’t apply when it comes to getting a refund or allocating an overpayment of tax. However, there are some exceptions to this rule.

These sections might still apply if the overpayment was made as part of a plan to get an unfair tax advantage. This could be the kind of advantage mentioned in section GB 35, which talks about imputation arrangements to get tax advantages. It could also be a plan to help a shareholder avoid paying tax they should pay under this law.

Another situation where these sections might apply is if the plan, or even just part of it, relied on the company being able to get a tax refund. This refund would be one the company could normally get under those sections if this rule didn’t exist.

Remember, this is just explaining the law as it’s written. If you need help understanding how this applies to your specific situation, it’s best to talk to a tax expert.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520489.

Topics:
Money and consumer rights > Taxes
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“This provision about unrefunded amounts for policyholder credit accounts no longer applies”

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RM 33: Limits on refunds for certain unit trusts and group investment funds, or

“Limits on refunds when unit trusts and investment funds close or change”

Part R General collection rules
Refunds: Qualifying companies

RM 32Application of sections RM 13 to RM 17 to qualifying companies

  1. Sections RM 13 to RM 17 do not apply to an overpayment of tax by a qualifying company that may be refunded to or allocated by the company unless—

  2. the overpayment was made as part of or under an arrangement—
    1. to obtain a tax advantage of a kind referred to in section GB 35 (Imputation arrangements to obtain tax advantage); or
      1. to avoid a tax liability of a shareholder under this Act; and
      2. the arrangement, or a part of it, was based on the company’s ability to obtain a refund of tax that the company would have under those sections in the absence of this section.

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