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Tax Administration Act 1994

Information, record-keeping, and returns - Returns - Returns and return dates

39B: Changes in return dates: taxpayers with provisional tax and GST liabilities

You could also call this:

"Changing your balance date affects tax payment dates"

Illustration for Tax Administration Act 1994

You are a provisional taxpayer. You pay GST on a 2-month or 6-month cycle. You can change your balance date. If you do, you keep your old provisional tax instalment due dates until your new balance date. You must apply certain sections of the Income Tax Act 2007 to determine your instalment due date and amount. If your taxable period is not aligned with your balance date, the Commissioner makes an adjustment. You may need to make an adjustment to your provisional tax liability for the income year. The Commissioner uses section 15B of the Goods and Services Tax Act 1985 to make the adjustment to your taxable period.

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Part 3Information, record-keeping, and returns
Returns: Returns and return dates

39BChanges in return dates: taxpayers with provisional tax and GST liabilities

  1. Subsection (2) applies if a provisional taxpayer—

  2. is a person registered under the Goods and Services Tax Act 1985, and pays GST on a 2-month cycle or a 6-month cycle; and
    1. elects under section 38(1) to change their balance date at some time in an income year; and
      1. moves from—
        1. a balance date in an even-numbered month to a balance date in another even-numbered month; or
          1. a balance date in an odd-numbered month to a balance date in another odd-numbered month.

          2. Until the new balance date is reached, the taxpayer must—

          3. continue with the due dates for their provisional tax instalments that applied before the change in balance date was approved; and
            1. apply sections RC 20 to RC 25, as relevant, and Schedule 3, Part B of the Income Tax Act 2007 for the transitional period to determine the due date and amount of an instalment.

              1. Subsection (4) applies if a provisional taxpayer—

              2. is a person registered under the Goods and Services Tax Act 1985, and pays GST on a 2-month cycle or a 6-month cycle; and
                1. elects under section 38(1) to change their balance date at some time in an income year; and
                  1. moves from—
                    1. a balance date in an even-numbered month to a balance date in an odd-numbered month; or
                      1. a balance date in an odd-numbered month to a balance date in an even-numbered month.

                      2. Until the new balance date is reached, the taxpayer must—

                      3. continue with the due dates for their provisional tax instalments that applied before the change in balance date was approved; and
                        1. apply sections RC 21 to RC 25, as relevant, and Schedule 3, Part B of the Income Tax Act 2007 for the transitional period to determine the due date and amount of an instalment; and
                          1. make an adjustment to their provisional tax liability for the income year for the part of the taxable period in which the new balance date falls.

                            1. If a change in balance date means that the taxpayer's taxable period is not aligned with their balance date, the Commissioner must make an adjustment to the taxable period under section 15B of the Goods and Services Tax Act 1985.

                            Notes
                            • Section 39B: inserted, on (applying for income years corresponding to 2008–09 and subsequent tax years), by section 218(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
                            • Section 39B(2)(b): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                            • Section 39B(4)(b): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).