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Income Tax Act 2007

General collection rules - Intermediaries - PAYE intermediaries’ responsibilities

RP 19B: Transfers for certain expected tax liabilities

You could also call this:

“Using tax pool funds to pay expected income or provisional tax before filing returns”

This section talks about how you can use money from a tax pooling account to pay your expected income tax or provisional tax. You can do this if you haven’t filed your tax return yet for that year. To use this option, you need to have filed all your previous tax returns and met your provisional tax rules for the year. You choose a date for the transfer that matches the tax payment dates in the law. If you end up paying too much, the extra money will be used to pay other taxes you owe, or it will be given back to you. This rule is more important than another rule about tax pooling transfers.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4055045.

Topics:
Money and consumer rights > Taxes
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Part R General collection rules
Intermediaries: PAYE intermediaries’ responsibilities

RP 19BTransfers for certain expected tax liabilities

  1. This section applies to a person who—

  2. expects to have an income tax or provisional tax liability other than under the AIM method for a tax year; and
    1. has acquired funds in a tax pooling account other than by depositing them on their own account; and
      1. has not yet filed a return of income in relation to the liability for the tax year.

        1. The person may choose to use the funds towards the payment of the liability for the tax year on meeting all the requirements of this section.

        2. At the time of making the request, the person must—

        3. for an income tax liability, have met all their return filing requirements for earlier tax years:
          1. for a provisional tax liability other than under the AIM method, have met all their obligations under the provisional tax rules for the tax year.

            1. The effective date that the person nominates for the transfer of funds must correspond to the relevant instalment date set out in schedule 3, part A (Payment of provisional tax and terminal tax).

            2. If an overpayment arises as a result of a transfer under this section, the amount of the overpayment is treated as follows:

            3. first, the amount is transferred to meet a liability of the person for—
              1. provisional tax (other than under the AIM method), terminal tax, and interest under Part 7 of the Tax Administration Act 1994, referred to in section RP 17B(4)(a) or (b):
                1. an amount referred to in section RP 17B(5) consisting of an increased amount of tax and interest payable under Part 7 of the Tax Administration Act 1994 on the increased amount of tax:
                  1. an amount referred to in section RP 17B(6) consisting of deferrable tax, or agreed delay tax, and interest payable under Part 7 of the Tax Administration Act 1994 on the deferrable tax or agreed delay tax:
                  2. secondly, the amount is transferred with an effective date that is no earlier than the date on which the Commissioner received the later application:
                    1. thirdly, the amount is refunded to the person.

                      1. This section overrides section RP 17B(7)(a).

                      Notes
                      • Section RP 19B: inserted, on , by section 128 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                      • Section RP 19B(1)(a): amended, on , by section 45(1) (and see section 45(4) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                      • Section RP 19B(3)(b): amended, on , by section 45(2) (and see section 45(4) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                      • Section RP 19B(5): replaced (with effect on 3 July 2014), on , by section 232 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                      • Section RP 19B(5)(a)(i): replaced, on , by section 274(1) (and see section 274(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                      • Section RP 19B(5)(b): amended, on , by section 67(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                      • Section RP 19B list of defined terms apply: inserted, on , by section 67(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                      • Section RP 19B list of defined terms request: inserted, on , by section 67(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).