28 February 2024
If your client’s income tax return has a credit transfer request, the amount of the transfer should fully ‘complete’ the period.
For example, if your client has an income tax refund of $350 but the transfer request is for $300, we’ll need to know what to do with the remaining $50.
If you have provided an income tax refund bank account, our system will automatically transfer $300 and refund the $50. If there is no refund bank account, our system will hold the $350 until it can process the whole credit. We will send a letter asking for a refund bank account. Once we receive the bank account details, the transfer request will be actioned, and the remaining balance refunded.
However, as credit transfer requests have an expiry date, the full amount will be refunded if the bank account is not provided until after the credit transfer request expires.
Now that credit use of money interest (UOMI) is back, we are seeing more cases where the credit transfer requested does not fully resolve the balance due to UOMI accrued.
For example, if your client has an income tax refund of $350 but the transfer request is for $300, we’ll need to know what to do with the remaining $50.
If you have provided an income tax refund bank account, our system will automatically transfer $300 and refund the $50. If there is no refund bank account, our system will hold the $350 until it can process the whole credit. We will send a letter asking for a refund bank account. Once we receive the bank account details, the transfer request will be actioned, and the remaining balance refunded.
However, as credit transfer requests have an expiry date, the full amount will be refunded if the bank account is not provided until after the credit transfer request expires.
Now that credit use of money interest (UOMI) is back, we are seeing more cases where the credit transfer requested does not fully resolve the balance due to UOMI accrued.
Last updated:
28 Feb 2024