Tax Administration Act 1994

Assessments

113B: Amended assessments if dividend recovered or repaid

You could also call this:

"Changing tax if a company gets back a dividend payment"

Illustration for Tax Administration Act 1994

If a company gets back a dividend from a shareholder under section 56 of the Companies Act 1993, you need to tell the Commissioner. The Commissioner will then change the tax assessment to ignore the dividend. This happens even if a lot of time has passed. If a debt is treated as a dividend and the money is paid back, you must tell the Commissioner. The Commissioner will change the tax assessment to ignore the dividend. This also happens if a company's expenses are treated as a dividend and the money is paid back. You must tell the Commissioner if a loan is treated as a dividend and the loan is paid back. The Commissioner will then change the tax assessment to ignore the dividend.

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This page was last updated on 28 November 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM354951.

Topics:

Money and consumer rights > Taxes

113A: Correction of certain errors in subsequent returns, or

"Fixing small mistakes in your tax returns"

113C: Amended assessments for attributed repatriation dividends, or

"Changing tax bills for money brought back to New Zealand"

Part 6Assessments

113BAmended assessments if dividend recovered or repaid

This section applies if—
a company recovers a dividend from a shareholder under section 56 of the Companies Act 1993 or an equivalent provision of foreign law; or
the release of a debt is treated as a dividend and the released amount is repaid; or
close company expenditure to which section CD 41(2) of the Income Tax Act 2007 applies is treated as a dividend and the expenditure is repaid; or
a loan made before 1 April 1992 was treated as a dividend under section 4(1)(b) of the Income Tax Act 1976 and the loan is repaid.

If the Commissioner is given notice of the recovery or repayment, the Commissioner must amend each relevant assessment to the extent necessary to ensure that the dividend and any attached imputation credit are disregarded.
This section applies despite the time bar.

Compare

s CF 2(8)(a)(i)

Notes

Section 113B: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 113B(1)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 113B(2): amended, on 1 April 2017, by section 336 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).