80KWEffect of extra instalment on entitlement to tax credit

1. This section applies to a person who—

2. is entitled to a WFF tax credit or minimum family tax credit for the whole or part of a tax year; and
3. receives a payment under either section 80KI or 80KN of an instalment of the credit for each period of a fortnight or a week in the tax year, as applicable; and
4. as a consequence of the year not being divided into an exact number of fortnights or weeks,—
   1. receives in the tax year 27 instalments corresponding to a period of a fortnight; or
   2. may have received in the tax year 53 instalments corresponding to a period of a week.

5. Subsection (3) applies—

6. for the purposes of section MF 6 of the Income Tax Act 2007; and
7. when the person has received payments for the whole of a tax year in 27 instalments as described in subsection (1)(c)(i).

8. The person is entitled to a tax credit for the tax year of an amount calculated using the formula—

   $tax\; credit\; +\; ((final\; instalment\; -\; parental\; tax\; credit)\; \times \; 13\; ÷\; 14).$

   Where:

9. In the formula in subsection (3),—

10. tax credit is the amount of the tax credit for the tax year calculated for the person under—
    1. section MD 1 of the Income Tax Act 2007, if the person is entitled to a WFF tax credit:
    2. section ME 1 of that Act, if the person is entitled to the minimum family tax credit:
    3. section MG 1 of that Act, if the person is entitled to the Best Start tax credit:
11. final instalment is the amount of the final instalment received by the person in the tax year:
12. parental tax credit is the amount of any parental tax credit that is included in the final instalment received by the person in the tax year.

13. Subsection (6) applies—

14. for the purposes of section MF 6 of the Income Tax Act 2007; and
15. when the person has received payments for the whole of a tax year in 53 instalments as described in subsection (1)(c)(ii).

16. The person is entitled to a tax credit for the tax year equal to an amount calculated using the formula—

    $(tax\; credit\; -\; parental\; tax\; credit)\; \times \; 53\; ÷\; 52.$

    Where:

17. In the formula in subsection (6),—

18. tax credit is the amount of the tax credit for the tax year calculated for the person under—
    1. section MD 1 of the Income Tax Act 2007, if the person is entitled to a WFF tax credit:
    2. section ME 1 of that Act, if the person is entitled to the minimum family tax credit:
    3. section MG 1 of that Act, if the person is entitled to the Best Start tax credit:
19. parental tax credit is the total amount of parental tax credit to which the person is entitled for the tax year calculated under section MD 12 of the Income Tax Act 2007.