Section MK 3 — Income Tax Act 2007: Payment of tax credits

MK 3 Payment of tax credits When this section applies (1) This section applies when a member credit contribution is made to a KiwiSaver scheme or a complying superannuation fund. Payment (2) The Commissioner must pay a tax credit to the trustees of the scheme or fund (the fund provider ) to which the person has contributed. The amount of the tax credit is calculated under section MK 4 . Subsection (5) overrides this subsection. Full amount paid (3) The Commissioner must pay the full amount of the tax credit by direct credit to the fund provider without subtracting any amount that the person or fund provider may be obliged to pay to the Commissioner. Subsection (5) overrides this subsection. Payment (4) The Commissioner must pay the amount of the tax credit to the fund provider within 30 working days of the provider filing a claim form under section 68C(3) or (4) of the Tax Administration Act 1994. Exception: payment to person or another provider (5) Despite subsections (2) and (3), the Commissioner may pay the amount of the tax credit as follows: (a) to the person, if it would be impossible or impractical to pay it to the person's fund provider because either the person has no fund provider, or because the person has died or has suffered a serious illness as defined in schedule 1, clause 12(3) of the KiwiSaver Act 2006; or (b) to a fund provider ( provider B ) other than the fund provider referred to in subsections (2) and (3), if the person is transferring or has transferred to provider B. Defined in this Act: amount , Commissioner , complying superannuation fund , employer contribution , employer’s superannuation contribution , fund provider , KiwiSaver scheme , member credit contribution , pay , tax credit , trustee , Compare: 2004 No 35 ss KJ 1 , KJ 4 , OB 1 “ member credit contributions ” Section MK 3(1) heading: substituted, on 1 April 2008, by section 128(1) of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section MK 3(1): substituted, on 1 April 2008, by section 128(1) of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section MK 3(2): amended, on 1 April 2008, by section 128(2) of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section MK 3(3): amended, on 1 April 2008, by section 128(3) of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section MK 3(4) heading: substituted, on 1 April 2008, by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section MK 3(4): substituted, on 1 April 2008, by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section MK 3(5) heading: added, on 1 April 2008, by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section MK 3(5): added, on 1 April 2008, by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section MK 3(5)(b): amended, on 29 August 2011, by section 111 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section MK 3 list of defined terms employer contribution : inserted, on 1 April 2008, by section 128(5)(a) of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section MK 3 list of defined terms member credit contribution : inserted, on 1 April 2008, by section 128(5)(a) of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section MK 3 list of defined terms superannuation contribution : repealed, on 1 April 2008, by section 128(5)(b) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).