EZ 81Refund of excess deposit in adverse event income equalisation account as consequence of election under section EZ 4B

1. This section applies when—

2. a person makes an election under section EZ 4B(2) (Cattle destroyed because of Mycoplasma bovis: spreading); and
3. as a consequence of the election, the person’s adverse event deposits for an accounting year ignoring section EH 60 (Transfer of deposit), less the amount of any refund made to the person for the accounting year under section EH 42 (Refund of excess deposit), are more than their adverse event maximum deposit for the accounting year.

4. The Commissioner must refund the excess to the person from deposits the person made for the accounting year—

5. 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
6. as soon as practicable after the election is made.

7. The amount of the refund must include any interest payable under sections EH 6 and EH 40 (which relate to interest on deposits in income equalisation accounts) on a deposit from which the excess must be refunded.

8. 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, EH 15, or EH 45 (which relate to refunds from income equalisation accounts).

9. The earliest of the refunded deposits to have been refunded, to the extent necessary to make up the shortfall, are treated as—

10. not having been refunded under section EH 13, EH 15, or EH 45, as applicable; and
11. having been refunded under this section.

12. A refund under this section is,—

13. to the extent to which the refund is interest payable under section EH 6 or EH 40, income under section CZ 37(1) (Income equalisation schemes); and
14. to the extent to which the refund is not interest payable under section EH 6 or EH 40, excluded income under section CZ 37(2).

15. 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:

16. interest is computed with daily rests from the date on which the deposit was transferred to the main income equalisation account until the date the election is made:
17. interest on the deposit accrues until the earlier of—
    1. 31 March in each year; and
    2. the date the election is made.

18. This section overrides section EH 42.

19. In this section,—

    adverse event deposit has the meaning given in section EH 62 (Other definitions)

    deposit—

    1. means an adverse event deposit; and
    2. includes an adverse event deposit that has been transferred to a main income equalisation account under section EH 60 or EZ 82; and
    3. includes, for the purposes of subsections (3) and (7)(a) and (b), interest that is added to a deposit, as defined in paragraphs (a) and (b), under section EH 6(5) or EH 40(4)

    main income equalisation account has the meaning given in section EH 36 (Other definitions).