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YD 11: Meaning of CTR group member
or “Definition of CTR group member removed from tax law”
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“Explaining how tax years and income years are defined and referenced in the Act”

This section explains how to understand references to tax years and income years in the Income Tax Act.

When you see a tax year mentioned with two years, like “2022-2023”, it means the year starting on 1 April of the first year (2022) and ending on 31 March of the second year (2023).

An income year is linked to a tax year. If someone talks about the 2022-2023 income year, they mean the same period as the 2022-2023 tax year.

Some people have standard balance dates, which means their tax year ends on 31 March. Others have non-standard balance dates, which means their tax year ends on a different date. They need special approval for this.

People with early balance dates end their tax year between 1 October and 30 March. Those with late balance dates end their tax year between 1 April and 30 September.

When the Act mentions standard or non-standard years, early or late balance dates, it’s talking about these different ways people organise their tax years.

Remember, this information applies to the whole Act unless stated otherwise.

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Part Y Definitions and related matters
References to balance dates and years

YE 1References to balance dates and years

  1. This section applies for the purposes of the Act unless the context requires otherwise.

  2. A reference to a tax year that is identified by a reference, in full or short form, to 2 years is a reference to the tax year that—

  3. starts on 1 April in the earlier of those years; and
    1. ends on 31 March in the later of those years.

      1. A reference to an income year that is identified by a reference, in full or short form, to 2 years is a reference to the corresponding income year for the tax year that a reference to the same 2 years would identify.

      2. A reference to a person with a standard balance date, a standard accounting year, or a standard income year is a reference to a person who files a return of income under section 33 of the Tax Administration Act 1994 for a tax year on the basis of a corresponding income year also ending on 31 March.

      3. A reference to a person with a non-standard balance date, non-standard accounting year, or non-standard income year is a reference to a person who has approval under section 38 of the Tax Administration Act 1994 to file a return of income for a tax year on the basis of a corresponding income year ending other than 31 March. Unless the context requires otherwise, the non-standard year is the accounting year that corresponds to the tax year for which the reference is made.

      4. A reference to a person with an early balance date is a reference to a person who has approval under section 38 of the Tax Administration Act 1994 to file a return of income for a tax year on the basis of a corresponding income year that ends in a date between 1 October and the following 30 March, both days inclusive. Unless the context requires otherwise, the year with the early balance date is the accounting year that corresponds with the tax year for which the reference is made.

      5. A reference to a person with a late balance date is a reference to a person who has approval under section 38 of the Tax Administration Act 1994 to file a return of income for a tax year on the basis of a corresponding income year that ends in a date between 1 April and the following 30 September, both days inclusive. Unless the context otherwise requires, the year with the late balance date is the accounting year that corresponds with the tax year in relation to which the reference is made.

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      Notes
      • Section YE 1(6): amended (with effect on 1 April 2008), on , by section 174 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).