Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Avoidance and non-market transactions - Avoidance: specific

GB 44B: Arrangements involving FamilyBoost tax credits

You could also call this:

“Rules against misusing FamilyBoost tax credits”

This law is about FamilyBoost tax credits. You need to know two important things:

Firstly, this law applies when you do something (called an arrangement) that tries to get around the rules for FamilyBoost tax credits. If you do this, it’s not allowed.

Secondly, if you try to cheat the system, the tax person (called the Commissioner) can reduce your FamilyBoost tax credit. They will give you only the amount they think you should have gotten if you hadn’t tried to cheat.

The FamilyBoost tax credits are explained in another part of the law called subpart MH. If you want to know more about these credits, you can look there.

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 It might be out of date or be missing some parts.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=LMS976293.

Topics:

Money and consumer rights > Taxes

GB 44: Arrangements involving tax credits for families, or

“Rules to prevent unfair arrangements for family tax credits”

GB 45: Arrangements involving money not at risk, or

“Rules for tax arrangements where you might claim more deductions than you earn”

Part G Avoidance and non-market transactions
Avoidance: specific

GB 44BArrangements involving FamilyBoost tax credits

This section applies when—
a person enters into an arrangement; and
the arrangement has a purpose or effect of defeating the intent and application of subpart MH (FamilyBoost tax credits).

A tax credit under subpart MH is reduced to the amount the Commissioner considers would have arisen had the arrangement not occurred.

Notes

Section GB 44B: inserted, on 1 July 2024, by section 9 of the Taxation (Budget Measures) Act 2024 (2024 No 19).