Income Tax Act 2007

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

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

You could also call this:

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

When you make an election under section EZ 4B(2) or FP 23(3), it can affect your adverse event deposits. If you have more deposits than you need, you get a refund. The refund comes from the deposits you made for the accounting year.

You get the refund as soon as possible after making the election. The amount of the refund includes any interest you earned on the deposit. If some of your deposits were already refunded, the earlier refunds are treated as if they never happened, so you can get the right refund now.

The refund is either income or excluded income, depending on whether it’s interest or not. Interest is calculated daily from when the deposit was made until the election date. This section is more important than section EH 42 if they conflict.

In this section, some words have special meanings: “adverse event deposit” is defined in section EH 62, “deposit” includes adverse event deposits and interest, and “main income equalisation account” is defined in section EH 36.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS484614.


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

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


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EZ 82: Transfers of deposits when adverse event income equalisation accounts abolished, or

"Moving savings to new accounts when government closes special farm savings scheme"

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

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

  1. This section applies when—

  2. 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
    1. 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.
      1. The Commissioner must refund the excess to the person from deposits the person made for the accounting year—

      2. 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
        1. as soon as practicable after the election is made.
          1. 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.

          2. 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).

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

          4. not having been refunded under section EH 13, EH 15, or EH 45, as applicable; and
            1. having been refunded under this section.
              1. A refund under this section is,—

              2. 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
                1. 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).
                  1. 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:

                  2. 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:
                    1. interest on the deposit accrues until the earlier of—
                      1. 31 March in each year; and
                        1. the date the election is made.
                        2. This section overrides section EH 42.

                        3. In this section,—

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

                            deposit

                            1. means an adverse event deposit; and
                              1. includes an adverse event deposit that has been transferred to a main income equalisation account under section EH 60 or EZ 82; and
                                1. 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).

                                  Notes
                                  • Section EZ 81: inserted (with effect on 1 April 2017), on , 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 81 heading: amended, on , by section 58(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                                  • Section EZ 81(1)(a): amended, on , by section 58(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                                  • Section EZ 81(9) deposit paragraph (b): amended (with effect on 18 March 2019), on , by section 60 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).