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Income Tax Act 2007

Timing and quantifying rules - Terminating provisions - Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 80: Refund of excess deposit in main income equalisation account as consequence of election under section EZ 4B or FP 23

You could also call this:

“Getting back extra money from your main income equalisation account after making a special choice”

When you make an election under section EZ 4B(2) or FP 23(3), it can affect your main income equalisation account. If you have too much money in your account because of this election, you might get some of it back. The Commissioner will refund the excess money to you.

The Commissioner must give you back the extra money as soon as possible after you make the election. You will get back the amount that is more than your main maximum deposit for the accounting year. The refund will include any interest you should have received under section EH 6.

If the Commissioner cannot refund all the excess money because some of it has already been given back to you, they will use some of the earlier refunds to make up the difference. This means some of the earlier refunds will be treated as if they were made under this section instead.

When you get a refund, it might be considered income or excluded income, depending on whether it is interest or not. If it is interest, it is income under section CZ 37(1), but if it is not interest, it is excluded income under section CZ 37(2).

The rules for calculating interest under section EH 6 apply to the excess money, but with some changes. Interest is calculated from the date the deposit was received until the date the election is made. Interest accrues until the earlier of 31 March or the date the election is made.

This section is more important than section EH 8 if they conflict.

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This page was last updated on 20 May 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS484606.

EZ 79: Insurance for Hurunui/Kaikōura earthquake damage of property: limit on depreciation recovery income, or

"Limits on tax for insurance payouts from Hurunui/Kaikōura earthquake property damage"

EZ 81: Refund of excess deposit in adverse event income equalisation account as consequence of election under section EZ 4B or FP 23, or

"Getting a refund if you put too much money into your income equalisation account"

Part E Timing and quantifying rules
Terminating provisions: Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 80Refund of excess deposit in main income equalisation account as consequence of election under section EZ 4B or FP 23

This section applies when—
a person makes an election under section EZ 4B(2) (Cattle destroyed because of Mycoplasma bovis: spreading) or FP 23(3) (Livestock destroyed because of emergency events); and
as a consequence of the election, the person’s deposits for an accounting year, less the amount of any refund made to the person for the accounting year under section EH 8 (Refund of excess deposit), are more than their main maximum deposit for the accounting year.

The Commissioner must refund the excess to the person from deposits the person made for the accounting year—
to the extent to which, at the time the election is made, the person has sufficient deposits made for the accounting year in their main income equalisation account to enable the Commissioner to do so; and
as soon as practicable after the election is made.

The amount of the refund must include any interest payable under section EH 6 (Interest on deposits in main income equalisation account) on a deposit from which the excess must be refunded.
Subsection (5) applies when the Commissioner is unable to refund the full amount of the excess to the person from deposits the person made for the accounting year because some or all of those deposits (the refunded deposits) have already been refunded to the person under section EH 13 or EH 15 (which relate to refunds from main income equalisation accounts).
The earliest of the refunded deposits to have been refunded, to the extent necessary to make up the shortfall, are treated as—
not having been refunded under section EH 13 or EH 15, as applicable; and
having been refunded under this section.

A refund under this section is,—
to the extent to which the refund is interest payable under section EH 6, income under section CZ 37(1) (Income equalisation schemes); and
to the extent to which the refund is not interest payable under section EH 6, excluded income under section CZ 37(2).

Section EH 6 applies to a deposit that forms all or part of the excess, other than a deposit that has been refunded before the election is made, with the following modifications:
interest is computed with daily rests from the date of acknowledgment of the receipt of the deposit until the date the election is made:
interest on the deposit accrues until the earlier of—
1. 31 March in each year; and
2. the date the election is made.

This section overrides section EH 8.

Notes

Section EZ 80: inserted (with effect on 1 April 2017), on 30 March 2021, by section 57(1) (and see section 57(2) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section EZ 80 heading: amended, on 1 April 2025, by section 57(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section EZ 80(1)(a): amended, on 1 April 2025, by section 57(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).