Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Terminating provisions

CZ 37: Income equalisation schemes

You could also call this:

"Refunds and how they affect your tax"

Illustration for Income Tax Act 2007

You get a refund under section EZ 80 or EZ 81. The refund is income if it is interest under section EH 6 or EH 40. You allocate this income to the year you get the refund. You get a refund under section EZ 80 or EZ 81. If the refund is not interest under section EH 6 or EH 40, it is excluded income. This means you do not pay tax on this part of the refund.

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 It might be out of date or be missing some parts.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=LMS478224.

This page was last updated on — View changes

Topics:
Money and consumer rights > Taxes
Previous

CZ 36: Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years, or

"Rule for tax-free backdated social rehabilitation payments from 2008 to 2018"

Next

CZ 38: Disposals of trading stock to non-associates without business purpose, or

"Selling trading stock without a business reason to someone you don't work with"

Part CIncome
Terminating provisions

CZ 37Income equalisation schemes

  1. A refund made to a person under section EZ 80 (Refund of excess deposit in main income equalisation account as consequence of election under section EZ 4B or FP 23) or EZ 81 (Refund of excess deposit in adverse event income equalisation account as consequence of election under section EZ 4B or FP 23) is, to the extent to which the refund is interest payable under section EH 6 (Interest on deposits in main income equalisation account) or EH 40 (Interest on deposits in adverse event income equalisation account), income of the person and is allocated to the income year in which the person receives the refund.

  2. A refund under section EZ 80 or EZ 81 is, to the extent to which the refund is not interest payable under section EH 6 or EH 40, excluded income.

Notes
  • Section CZ 37: inserted (with effect on 1 April 2017), on , by section 24(1) (and see section 24(2) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
  • Section CZ 37(1): amended, on , by section 37 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).