On 1 June 2021, the Minister of Rural Communities, Damian O’Connor, declared the flooding in Canterbury to be a medium-scale adverse event. This is affecting taxpayers’ ability to comply with their tax obligations, including filing and paying on time.
Income equalisation scheme - withdrawals
Normally income equalisation deposits are not available for refund until 12 months after the deposit is made. However, we do have discretion to allow early refunds, particularly in the case of a medium-scale adverse event or when the person is suffering serious hardship.
All applications for an early refund must be in writing and will take approximately 20 days to process. Remember that the refund will be income in the year that the application is made unless it is elected to treat the refund as income in the prior income year where the application for refund is made in the specified period.
For more information on income equalisation and deposits, please refer to our 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)