Income Tax Act 2007 section 953

How a set-off claim works

Section 953 explains how a set-off claim operates to offset income tax suffered against income tax payable at the end of a return period, and the consequences of making such a claim.

• A set-off claim allows the net income tax suffered in a return period to be matched against the net income tax payable, with the suffered tax treated as repaid and the payable tax treated as paid to the extent of the set-off
• Where the set-off is allowed, any liability to pay the income tax treated as paid is discharged, and any amounts already paid in respect of that tax are refunded
• The claim must be made on a section 949 return for the relevant period, even if no payments under section 946 were made during that period
• Income tax used in a set-off claim cannot also be used to obtain relief under the corporation tax set-off provisions, and deposit-takers may only claim set-off where the relevant payment is taken into account for corporation tax purposes