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Tax Administration Act 1994

Transfers of excess tax

173K: Application

You could also call this:

"Getting a refund if you paid too much tax"

Illustration for Tax Administration Act 1994

This part of the law applies if you have paid too much tax. You can get a refund for the extra tax you paid if it has not been used to pay another tax debt. The Commissioner can also transfer some or all of the extra tax to another account at your request. When tax is transferred, it is like the person who paid too much tax got a refund on the day it was transferred. The person who gets the transferred tax is treated as if they paid it on the day it was transferred, but there is an exception for penalties under Part 9. This rule does not apply for Part O of the Income Tax Act 2007.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM357955.

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"The Commissioner's Certificate: Proof of Assistance"

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173L: Transfer of excess tax within taxpayer's accounts, or

"Move extra tax paid to another time or tax type"

Part 10BTransfers of excess tax

173KApplication

  1. This Part applies if tax has been paid in excess of the amount properly payable—

  2. to the extent that the tax paid in excess by or on behalf of a taxpayer is refundable and after the date the tax was paid, and before it is transferred under this Part, has not been applied to satisfy a tax liability or other amount due:
    1. to allow the Commissioner to transfer all or part of the excess at the taxpayer's request.

      1. For the purpose of the Inland Revenue Acts—

      2. tax transferred by the transferor is treated as a refund to the transferor on the date of transfer; and
        1. tax transferred to the transferee is treated as tax paid by the transferee on the date of transfer, except for the purpose of imposing a shortfall penalty under Part 9.

          1. Subsection (2) does not apply for Part O of the Income Tax Act 2007.

          Notes
          • Section 173K: inserted, on , by section 91(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
          • Section 173K(3): inserted, on , by section 224 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).