Section RM 22 — Income Tax Act 2007: Limits on refunds for Maori authorities

RM 22 Limits on refunds for Maori authorities When this section applies (1) This section applies when a Maori authority is entitled to a refund of income tax under sections RM 2 and RM 4 to RM 6 . Amount of refund limited (2) The amount of the refund must be no more than the credit balance of the Maori authority in the Maori authority credit account at the latest of the following dates: (a) the last day of the tax year that has just ended: (b) the last day of a period for which the Maori authority is required to file a return under section 70B(1) of the Tax Administration Act 1994: (c) the last day of a period for which the Maori authority files a Maori authority credit account return under section 70B(3) of that Act. Time for filing returns (3) Subsection (2) does not apply if the Maori authority has an extension of time to file its Maori authority credit account return for a tax year, and files the return with the extended time. In that case, the total amount refunded must be no more than the credit balance of the Maori authority in its Maori authority credit account on the last day of the tax year to which the return relates. Satisfying liabilities or retained (4) If the Maori authority has a refund of income tax, and an amount paid in excess is not refunded because of the application of subsection (2) or section RM 23 , the amount prevented from being a refund or transfer— (a) is used to satisfy an income tax or provisional tax liability of the Maori authority for the tax year of the entitlement; and (b) may be used by the Maori authority to satisfy an income tax or provisional tax liability for a tax year other than the tax year of entitlement; and (c) is retained in the authority’s tax account with the Commissioner to the extent to which paragraphs (a) and (b) do not apply. Credit for provisional tax (5) Despite subsection (4), the amount may be credited on a provisional tax instalment date if residual income tax is treated under section 120K of the Tax Administration Act 1994 as payable on the date set out in Part 7 of that Act. Relationship with section RZ 6 (6) Section RZ 6 (Limits on refunds: transitional dates) overrides subsection (4)(b). Defined in this Act: amount , income tax , income tax liability , instalment date , Maori authority , Maori authority credit account , Maori authority credit account return , provisional tax , residual income tax , tax account with the Commissioner , tax year , Compare: 2004 No 35 s MD 2B(1), (1B)