Class of Case income equalisation scheme - withdrawals
Usually Income Equalisation Scheme deposits are generally not available for refunds until 12 months after the deposit is made. However, where the Commissioner is satisfied that an affected person will use a refund for certain purposes, early refunds can be made. The purposes set out in section EH 15(3) of the Income Tax Act 2007 are:
- for the immediate purchase of replacement livestock lost as a result of a self-assessed adverse event
- to avoid serious hardship
- a purpose determined by the Commissioner in a case or class of case.
Class of case - refunds
Those farmers, fishers or growers materially affected by COVID-19 will be permitted to make early refunds. In this case, materially affected means that the farmer, fisher or grower is in financial difficulty, through the incurring of significant additional expenditure or through a significant decrease in revenue as a result of the impacts of COVID-19.
Determined purpose - refunds
Early refunds will be permitted to assist farmers, fishers or growers in financial difficulty as a result of the impacts of COVID-19.
Process - refunds
All applications for an early refund can be made via myIR and will take approximately 20 days to process.
Follow the income equalisation scheme refunds process.
When a refund is treated as income
Generally, the refund will be income in the year that the application is made.
However, there is an exception. Where the application for refund is made in either:
- the specified period
- a longer period allowed by the Commissioner in a case or class of cases.
The person can choose in the application that the refund is to be income in the income tax year to which the specified period or the longer period relates.
For more information, refer to our Standard Practice statement on income equalisation deposits and refunds.
Standard Practice Statement 19/03 Income equalisation deposits and refunds.
For more information, please contact us on our emergency helpline:0800 473 566
New Zealand legislation Income Tax Act 2007
- Section EH 4(4)
- Section EH 15(3)