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RM 10: Using refund to satisfy tax liability
or “Asking Inland Revenue to use your tax refund to pay your tax debts”
You could also call this:

“Using your GST refund to pay some or all of your provisional tax”

If you get a GST refund in a tax period, you can use it to pay some or all of your provisional tax that’s due on the same date. This applies when your GST refund comes from section 20(5) of the Goods and Services Tax Act 1985.

You can choose how much of your GST refund you want to use for your provisional tax payment. It’s up to you if you want to use all of it or just a part of it.

Sometimes, the Commissioner might change your assessment and reduce your refund amount. If this happens, the amount of provisional tax you’ve paid using your GST refund will be the new, smaller amount.

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Next up: RM 12: Reduction in provisional tax liability

or “How to get money back when you've paid too much provisional tax”
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Part R General collection rules
Refunds

RM 11Using GST refund to pay instalment of provisional tax

  1. This section applies when a person who is liable to pay provisional tax has a goods and services tax (GST) refund in a taxable period as a result of the application of section 20(5) of the Goods and Services Tax Act 1985.

  2. The person may choose to use the amount of the refund to pay some or all of an instalment of provisional tax that is payable on the same instalment date.

  3. If the Commissioner amends the assessment reducing the amount of the refund, the person’s payment of provisional tax arising from the GST refund is the reassessed amount.

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