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RB 4: Using refunds to satisfy tax liabilities
or “How Inland Revenue can use your tax refund to pay off your tax bills”
You could also call this:

“This subpart outlines the rules, calculations, and consequences for provisional tax payments”

This part of the law explains the rules about provisional tax. It tells you when you need to pay provisional tax and how much you need to pay. Here’s what the rules cover:

When you have to pay provisional tax.

How to work out how much provisional tax you owe for a tax year.

How many times you need to pay provisional tax in a year and when these payments are due.

How to figure out how much each payment should be.

How to pay provisional tax in a year when there are changes to the tax system.

What happens if you pay late or don’t pay enough. This includes rules about interest charges and penalties.

The law also talks about different payment dates, which are given letter names from A to F1. These dates are listed in another part of the law called schedule 3, part A.

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Next up: RC 2: Provisional tax rules and their application

or “How to pay tax in advance and when these rules apply to you”
Next

Part R General collection rules
Provisional tax

RC 1What this subpart does

  1. Sections RC 3 to RC 39 apply, for the purposes of the provisional tax rules, to provide—

  2. the circumstances in which a person has a provisional tax obligation:
    1. a person’s provisional tax liability for a tax year, and the methods for calculating the amount payable for the tax year:
      1. the number of instalments of provisional tax and the instalment dates for a corresponding income year:
        1. how the amount of an instalment of provisional tax is determined:
          1. the payment of provisional tax in a transitional year:
            1. the application of the rules relating to use of money interest in Part 7 of the Tax Administration Act 1994, and late payment penalties and shortfall penalties in Part 9 of that Act.

              1. In this subpart, a reference to an instalment classified by the alphanumeric designations A to F1 is a reference to a date in the table in schedule 3, part A (Payment of provisional tax and terminal tax) on which an instalment of provisional tax is payable for an income year corresponding to a tax year.

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              Notes
              • Section RC 1(2): amended, on , by section 34(1) (and see section 34(2) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).