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Tax Administration Act 1994

Transfers of excess tax - Transfer rules

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

You could also call this:

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

Illustration for Tax Administration Act 1994

You can ask the Commissioner to move excess tax to another period or tax type. The Commissioner can move the excess tax up to a certain amount. This amount is based on what you owe or have paid. You get to choose when the excess tax is moved. This can be when you get a GST refund under section 19C(8) or 20(5) of the Goods and Services Tax Act 1985. It can also be after the end of the accounting year when tax was withheld or deducted on your behalf. There are some rules about when you can choose to move the excess tax. If you have an early balance date, you must choose a day after the end of the tax year. If you have already filed your tax return for the year, you can choose the day you filed it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM357958.

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"Getting a refund if you paid too much tax"

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173M: Transfer of excess tax to another taxpayer, or

"Move extra tax paid to another person or company"

Part 10BTransfers of excess tax
Transfer rules

173LTransfer of excess tax within taxpayer's accounts

  1. A taxpayer or their agent may request that the Commissioner transfer an amount of the excess to another period or another tax type of the taxpayer. If the date chosen under subsection (2) is after the start of the requested period for the taxpayer, the maximum amount that the Commissioner may transfer is the total of—

  2. debt owing by the taxpayer to the Commissioner for the requested period at the date chosen under subsection (2); and
    1. the taxpayer’s deferrable tax for the requested period at the date chosen under subsection (2); and
      1. the amount of an adjustment for the requested period under a notice of proposed adjustment, if there is no deferrable tax under paragraph (b) for the period; and
        1. any amount agreed with the Commissioner.

          1. The taxpayer may choose the date on which the amount is transferred, being—

          2. in the case of a GST refund provided by section 19C(8) or 20(5) of the Goods and Services Tax Act 1985, the applicable date set out in subsection (2B):
            1. in the case of tax withheld or deducted on the taxpayer's behalf, a day after the end of the accounting year in which the amount was withheld or deducted occurred:
              1. in the case of a tax credit for expenditure on research and development, a day after the end of the accounting year to which the credit relates:
                1. in any other case, a date that occurs on or after the date the excess tax is paid.

                  1. For the purposes of subsection (2)(a), the applicable date is—

                  2. when the taxpayer files their return before the due date, the earlier of—
                    1. the day on which the return is filed:
                      1. the day after the end of the GST return period in which the refund arose:
                      2. when the taxpayer files their return on the due date, the day after the end of the GST period in which the refund arose:
                        1. when the taxpayer files their return after the due date, the day on which the return is filed.

                          1. Despite subsection (2)(b) and (bb),—

                          2. a taxpayer who has an early balance date must, for tax withheld or deducted on their behalf or a tax credit for expenditure on research and development, choose a day after the end of the tax year in which the amount was withheld or deducted or the tax year corresponding to the accounting year to which the credit relates:
                            1. a taxpayer who has excess tax withheld or deducted on their behalf and has filed a tax return for the tax year in which the excess tax arises before the end of that tax year must, for the excess tax, choose the day on or after the date that the return is filed.

                              Notes
                              • Section 173L: inserted, on , by section 91(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
                              • Section 173L(1): replaced (with effect on 5 February 2017), on , by section 125(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                              • Section 173L(2): amended (with effect on 5 February 2017), on , by section 125(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                              • Section 173L(2)(a): amended (applying for taxable periods ending on or after 1 April 2018), on , by section 362(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                              • Section 173L(2)(a): amended (with effect on 5 February 2017), on , by section 125(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                              • Section 173L(2)(b): amended, on (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 173L(2)(bb): inserted (with effect on 1 April 2008), on (applying for 2008–09 and later income years), by section 691(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                              • Section 173L(2B): inserted (applying for taxable periods ending on or after 1 April 2018), on , by section 362(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                              • section 173L(2B)(a)(i): amended (with effect on 29 March 2018), on , by section 236(1) (and see section 236(3) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                              • section 173L(2B)(c): amended (with effect on 29 March 2018), on , by section 236(2) (and see section 236(3) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                              • Section 173L(3): replaced, on , by section 102 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).