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Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 4B: Fees to purchase funds in tax pooling accounts

You could also call this:

“Tax deduction for fees paid when using tax pooling to pay certain taxes”

You can get money back for fees you pay when you use a tax pooling account. This applies when you use the account to pay provisional tax, terminal tax, or extra tax after an assessment changes. The tax pooling system is explained in sections RP 17 to RP 21 of the law.

You can claim this money back in the same year that the Inland Revenue Department moves the money from the tax pooling account into your tax account to pay your tax.

This rule adds to the general permission for tax deductions. It also overrides some limits on deductions, like those for private expenses, employment, and withholding tax. But other general limits still apply to this deduction.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3996313.

Topics:
Money and consumer rights > Taxes
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Part D Deductions
Specific rules for expenditure types

DB 4BFees to purchase funds in tax pooling accounts

  1. A person is allowed a deduction for expenditure incurred in purchasing an amount held in a tax pooling account to pay a liability for provisional tax, terminal tax, or an increase in an assessment of tax as described in sections RP 17 to RP 21 (which relate to tax pooling intermediaries).

  2. The deduction is allocated to the income year in which the amount is transferred into the person's tax account by the Commissioner to satisfy the person's obligation to pay the tax.

  3. This section supplements the general permission and overrides the private limitation, the employment limitation, and the withholding tax limitation. The other general limitations still apply.

Notes
  • Section DB 4B: inserted, on , by section 14 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).