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Goods and Services Tax Act 1985

Refunds and relief from tax

47: Tax paid in excess may be credited towards tax payable when assessment re-opened

You could also call this:

"Get credit for extra tax paid if you owe tax for another time"

Illustration for Goods and Services Tax Act 1985

If you paid too much tax, the Commissioner might let you use the extra amount to pay tax you owe for another period. This can happen if the Commissioner looks at your tax for several periods and decides you owe more tax for one of them. You might have already paid too much tax for one of those periods, and the Commissioner can let you use that extra amount to pay the tax you owe, even if the time to get a refund has passed. The Commissioner will only do this if they think it is fair.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM84802.

Topics:
Money and consumer rights > Taxes
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"The Commissioner can hold back your tax refund if they need more information or you owe tax."

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Part 7Refunds and relief from tax

47Tax paid in excess may be credited towards tax payable when assessment re-opened

  1. In any case where, upon the investigation by the Commissioner of the liability of a registered person for tax over a number of taxable periods,—

  2. the Commissioner assesses the registered person with tax for any taxable period in respect of which no assessment has been made previously or alters an assessment for any taxable period so as to increase the amount thereof; and
    1. in respect of any taxable period or taxable periods within that group of taxable periods tax has been paid in excess of the amount properly payable,—
        1. the Commissioner may, in the Commissioner's discretion and to the extent that in the opinion of the Commissioner is equitable, allow any amount so paid in excess to be credited towards satisfying the registered person's liability to pay any tax payable for any taxable period or taxable periods, notwithstanding that the time limited for the making of a refund of any tax so paid in excess may have expired.

      Notes
      • Section 47 heading: amended, on (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 14 of the Goods and Services Tax Amendment Act 1996 (1996 No 59).
      • Section 47: amended, on (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 14 of the Goods and Services Tax Amendment Act 1996 (1996 No 59).