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Inland Revenue

Tax Policy

Claiming entitlement to the employer tax credit annual square-up

Clause 260


(67 – New Zealand Institute of Chartered Accountants)

Proposed section MK 12B(b) requiring that employers must claim their entitlement to any employer tax credit (ETC) square-up should be removed.


Employer tax credits were removed by the Taxation (Urgent Measures and Annual Rates) Act 2008, so any ETC square-up would only be applicable for the 2008–09 tax year. As a result of the administration and compliance costs involved, officials are recommending that the square-up not proceed. If this recommendation is accepted, the submission will no longer be relevant.


That the submission be declined.