Section EK 12 — Income Tax Act 2007: Refund if request or excess balance

EK 12 Refund if request or excess balance When this section applies (1) This section applies when— (a) a person wants a refund of some or all of the amount in the person’s environmental restoration account and none of sections EK 9 , EK 15 , EK 16 , and EK 19 applies: (b) the amount in the person’s environmental restoration account is more than the maximum account balance for an income year. Refund if request made (2) The Commissioner must make a refund under this section to a person if— (a) the person applies for a refund and has incurred expenditure— (i) of a kind that is listed in schedule 19, part B (Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant) and not in schedule 19, part C ; and (ii) of an amount equal to or greater than the amount given by subsection (3) for the amount of the refund; and (iii) after the first date on which the person made to the Commissioner a payment under section EK 2 for entry in the person’s environmental restoration account or a transfer under section EK 15 , EK 16 , or EK 19 was made to the person’s environmental restoration account: (b) the maximum account balance for the latest complete income year for the person’s environmental restoration account is less than the amount in the environmental restoration account at the end of that income year. Minimum amount of expenditure incurred (3) The amount of expenditure incurred that corresponds to the amount of a refund is calculated using the formula— amount tax rate. Definition of items in formula (4) In the formula,— (a) amount is the amount of the refund: (b) tax rate is the highest rate of income tax on taxable income that— (i) is set out in schedule 1 ( Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits); and (ii) would apply to the person for the tax year if the person had sufficient taxable income. Amount of refund if expenditure incurred (5) If a person is entitled to a refund under subsection (2)(a), the amount that the Commissioner must refund to the person is the smallest of— (a) the refund for which the person applies: (b) the contents of the person’s environmental restoration account at the time of the refund: (c) the refund corresponding to the person’s expenditure that meets the requirements of subsection (2)(a)(i) to (iii). Amount of refund if maximum account balance decreases (6) If a person is entitled to a refund under subsection (2)(b), the amount that the Commissioner must refund is the difference at the end of the latest complete income year between— (a) the amount in the person’s environmental restoration account after any transfer under section EK 15 , EK 16 , or EK 19 for the income year: (b) the person’s maximum account balance for the income year. Relationship with section EK 17 (7) Section EK 17 overrides subsections (5) and (6). Defined in this Act: amount , Commissioner , environmental restoration account , income tax , income year , maximum account balance , pay , tax year , taxable income , Compare: 2004 No 35 s EK 12 Section EK 12(4)(b)(i): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).