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Tax Administration Act 1994

Recoveries - General

166: Tax paid in excess may be set off against additional tax when assessment reopened

You could also call this:

"Getting a refund if you paid too much tax"

Illustration for Tax Administration Act 1994

You pay tax each year. If you pay too much tax, you can get a refund. The Commissioner checks your tax payments over several years. If you paid too much tax in one year, the Commissioner can use that extra money to pay tax you owe in another year. You can do this even if the time to get a refund has passed. This rule applies to tax paid before or after this law started. It applies to tax under this law or old tax laws. The Commissioner follows rules in the Income Tax Act 2007 and this Act when deciding what to do. You can find these rules in sections like OA 2(5), RA 19, and RM 13 to RM 17. The Commissioner also looks at section 104B of this Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM357448.

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Part 10Recoveries
General

166Tax paid in excess may be set off against additional tax when assessment reopened

  1. Subject to sections OA 2(5), RA 19, RA 20, RM 13 to RM 17, RM 32, and RZ 6 of the Income Tax Act 2007 and section 104B of this Act, in any case where, upon the investigation by the Commissioner of the liability of a taxpayer for tax over a group of successive years,—

  2. the Commissioner assesses the taxpayer with tax for a tax year in respect of which no assessment has been made previously, or amends an assessment for any year so as to increase the amount of the assessment; and
    1. the Commissioner is satisfied that in respect of a tax year within that group of years tax has been paid in excess of the amount properly payable,—
        1. the Commissioner may, to the extent that in the Commissioner's opinion is equitable, allow any amount so paid in excess to be deducted from or set off against any tax due and unpaid for any year or years within that group of years, notwithstanding that the time limited for the making of a refund of any tax so paid in excess may have expired.

      1. This section shall apply with respect to tax assessed whether before or after the commencement of this Act and whether under this Act or under the income tax provisions of any former Act.

      Compare
      • 1976 No 65 s 410
      Notes
      • Section 166(1): amended, on , by section 339 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
      • Section 166(1)(a): amended, on (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 166(1)(a): amended, on (applying to 2002–03 and subsequent income years), by section 231(1)(b) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
      • Section 166(1)(b): amended, on (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).