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Social Security Act 2018

Administration - Payment of benefits, tax on benefits, debts and deductions - Tax on benefits

352: Recovery amount paid in excess of amount properly payable

You could also call this:

“Getting back extra tax paid on your benefit”

If you receive a main benefit, and that benefit is reviewed, suspended, or cancelled, the Ministry of Social Development (MSD) might find out they’ve paid too much tax on your benefit to Inland Revenue. This can happen because the amount of tax paid is based on the benefit you receive.

When MSD realises they’ve paid too much tax, they can’t get the extra money back using the usual rules. Instead, they have two ways to fix this:

  1. They can reduce the amount of tax they pay to Inland Revenue on your benefit (or another benefit you get) in the future. This way, they balance out the extra amount they paid before.

  2. They can work out a different way to get the money back, but they need to agree on this with Inland Revenue.

These rules help MSD correct any tax overpayments without causing problems for you or needing to ask you for the money back directly.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783845.

Topics:
Money and consumer rights > Taxes
Government and voting > Government departments
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351: Status of amount for income tax paid by MSD, or

“Money MSD pays for your tax counts as part of your benefit and income”

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353: Debts and deductions, or

“How the government can get back money you shouldn't have received or need to pay”

Part 6 Administration
Payment of benefits, tax on benefits, debts and deductions: Tax on benefits

352Recovery amount paid in excess of amount properly payable

  1. This section applies if, as a result of the review, suspension, or cancellation of a main benefit, MSD determines that an amount for tax on the benefit has been paid under section 350(2) to the Commissioner in excess of the amount that is properly payable under section 350(2).

  2. MSD cannot recover the excess amount under regulations made under section 444, but may recover that amount by—

  3. making an adjustment to an amount later payable to the Commissioner under section 350(2) in respect of the source deduction payments for that or any other benefit payable to that beneficiary; or
    1. making other arrangements for its refund that are agreed with the Commissioner.

      Compare
      Notes
      • Section 352(1): amended, on , by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).