Section MD 2 — Income Tax Act 2007: Calculating net contributions to credits

MD 2 Calculating net contributions to credits When this section applies (1) This section applies when the Commissioner calculates the amounts making up the family tax credit, the in-work tax credit, the child tax credit, and the parental tax credit that relate to a period under this subpart. Calculating net contributions (2) The Commissioner must— (a) treat the family tax credit, the in-work tax credit, the child tax credit, and the parental tax credit as tax credits corresponding to the period; and (b) treat as a debit the amount of family credit abatement corresponding to the period; and (c) apply the amount of the family credit abatement corresponding to the period,— (i) first, to reduce the amount of the family tax credit corresponding to the period; and (ii) second, to reduce the amount of the in-work tax credit or, as applicable, the child tax credit corresponding to the period; and (iii) third, to reduce the amount of the parental tax credit corresponding to the period. Credit abatements (3) Section MD 16 overrides this section in relation to the amount of the family credit abatement and the parental tax credit abatement. Defined in this Act: amount , child tax credit , Commissioner , family credit abatement , family tax credit , in-work tax credit , parental tax credit , tax credit , Compare: 2004 No 35 s KD 2A Section MD 2(1): amended, on 1 April 2008, by section 467(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 2(2)(a): amended, on 1 April 2008, by section 467(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 2(2)(c)(i): amended, on 1 April 2008, by section 467(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 2(2)(c)(ii): amended, on 1 April 2008, by section 467(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 2(3) heading: added, on 1 April 2008, by section 467(5) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 2(3): added, on 1 April 2008, by section 467(5) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 2 list of defined terms family support : repealed, on 1 April 2008, by section 467(6)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 2 list of defined terms family tax credit : inserted, on 1 April 2008, by section 467(6)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 2 list of defined terms in-work payment : repealed, on 1 April 2008, by section 467(6)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 2 list of defined terms in-work tax credit : inserted, on 1 April 2008, by section 467(6)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).