Income equalisation scheme: Glossary

Glossary

Specified period

A specified period applies to both deposits and refunds. It is the shorter period of six months immediately following the balance date and one month after the due date for filing the return.

Example:

30 June balance date with an agent's extension of time the specified period is the earlier of:

• 6 months from balance date  - 31 December and
• 1 month after return is due - 30 April (return due date 31 March)

31 March balance date without agent's extension of time the specified period is the earlier of:

• 6 months after balance date - 30 September and
• 1 month after return due date - 7 August (return due date 7 July)

Required date

The required date is the earlier of:

• one month from the date of filing the return of income for the accounting year; or
• one month from the date the return of income is due to be filed.

Example:

If your balance date was 30 June 2004 with an agent extension of time to file till the 31 March 2005.

Your return is filed on the 15 January 2005, so any deposits or refunds made up until the 15 January 2005 will be accepted for the 2004 tax year.

Hobby farmer

A person farming a piece of land whose principal occupation is something other than a farmer, and who is not carrying on farming as a business with an intention to make a profit. 

Balance date

The balance date is the end of the accounting year.  The standard balance date is 31 March but an alternative date may be used on written approval from Inland Revenue.

Date published: 06 May 2008

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