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Income Tax Act 2007

Income - Terminating provisions

CZ 37: Income equalisation schemes

You could also call this:

"Money back from tax that you don't have to pay tax on"

Illustration for Income Tax Act 2007

You get a refund under section EZ 80 or EZ 81. If the refund is interest, it is income and you get it in the year you receive it. You can find more information about interest in sections EH 6 and EH 40. You get a refund under section EZ 80 or EZ 81. If the refund is not interest, you do not have to pay tax on it. This means it is excluded income and you do not have to include it in your tax return.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS478224.

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Topics:
Money and consumer rights > Taxes
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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 EZ 81 (Refund of excess deposit in adverse event income equalisation account as consequence of election under section EZ 4B) 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).