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Tax Administration Act 1994

Credits of tax - Payments to holders of notices of entitlement

80KLB: Recovery of excess tax credits

You could also call this:

"Paying back extra tax credits you didn't deserve"

Illustration for Tax Administration Act 1994

You get a tax credit paid to you by instalment. This happens under section MF 1 of the Income Tax Act 2007. If you were overpaid a tax credit in an earlier year, the Commissioner can use some of your next instalment to pay back the excess. The Commissioner can do this if you were overpaid as described in section MF 6 of the Income Tax Act 2007. The Commissioner can use the amount of an instalment payable to you to satisfy an amount you owe for the earlier year, as described in section MF 6(2) of that Act. This means the Commissioner can take some of your tax credit to pay back the amount you owe.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2467628.

Topics:
Money and consumer rights > Taxes
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"Getting tax credits paid into your bank account"

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80KM: Summary of instalments paid, or

"A list of payments made in parts"

Part 3BCredits of tax
Payments to holders of notices of entitlement

80KLBRecovery of excess tax credits

  1. This section applies when—

  2. the Commissioner pays a person a tax credit by instalment under section MF 1 of the Income Tax Act 2007 in a tax year; and
    1. in paying a tax credit by instalment in an earlier tax year, the Commissioner or the chief executive of the administering department has overpaid the tax credit as described in section MF 6 of that Act.

      1. The Commissioner may use the amount of an instalment payable to the person to satisfy an amount added under section MF 6(2) of that Act to the tax payable by the person for the earlier tax year.

      Notes
      • Section 80KLB: inserted (with effect on 1 April 2008), on (applying for 2008–09 and later income years), by section 636(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section 80KLB(1)(b): amended, on , by section 209(1) (and see section 209(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).