120CDefinitions

1. In this Part, unless the context otherwise requires,—

   Commissioner's paying rate means the rate of interest established and notified as the Commissioner's paying rate by an Order in Council made under section 120H

   date interest starts, subject to sections 120N and 120O,—

   1. for unpaid tax means—
      1. if a taxpayer pays too little tax by a due date—
         1. the day after the due date for payment of the tax; or
         2. where the due date is a new due date or, in the case of GST, a later due date for payment of the tax, the day after the original due date for payment of the tax:
      2. if the Commissioner refunds or applies tax that should be kept and taken into account in satisfying a taxpayer’s tax liability at a due date, the day after the day on which the Commissioner refunds or applies the tax, unless subparagraph (iib) applies to the taxpayer; and
      3. for a qualifying individual or an individual who is treated as a qualifying individual, if the Commissioner refunds, amends the amount of a refund, or applies tax that should be kept and taken into account in satisfying the individual’s tax liability at a due date, the day after the due date for payment of the tax; and
      4. for a provisional taxpayer to whom section 120KE(7) applies, the day after whichever dates of instalments B, D, and F for their corresponding income year occur 30 days after their last ratio instalment date; and
   2. for overpaid tax, other than a GST refund provided by section 19C(8) or 20(5) of the Goods and Services Tax Act 1985, or FBT for the final quarter of a tax year, means the later of the following days—
      1. if a taxpayer pays too much tax by or after a due date and subparagraph (iv) does not apply—
         1. the day after the later of the due date for payment of the tax and the date the payment is made; or
         2. where the due date is a new due date, the day after the later of the original due date for payment of the tax and the date on which the payment is made; and
      2. if a tax return is also to be provided in respect of the tax, the day after the tax return is provided; and
      3. for a taxpayer whose assessment for a tax year is made under Part 3, subpart 3B, the date on which their assessment arises under section 22I(2) or (3); and
      4. for a provisional taxpayer other than one to whom section 120KE(1) or (3) applies, the first day of the income year; and
      5. for a provisional taxpayer to whom section 120KE(6) applies, the later of—
         1. the day after the date set out in section RC 18(3) of the Income Tax Act 2007:
         2. the day after their last ratio instalment date; and
   3. for a GST refund provided by section 19C(8) or 20(5) of the Goods and Services Tax Act 1985, other than a refund for a non-resident person who is registered under section 54B of the Goods and Services Tax Act 1985, means the latest of the following days:
      1. the day after the earlier of—
         1. the 10th working day after the taxpayer provides a tax return for the return period to which the GST refund relates; and
         2. the original due date for payment of output GST in respect of that return period; and
      2. the day after the day on which the tax return is provided; and
   4. for overpaid tax, being FBT for the final quarter of a tax year, means the later of 31 May next following the end of the final quarter and the date on which the return for the final quarter is filed; and
   5. for tax paid, being a deposit to a tax pooling account in accordance with sections RP 17 to RP 21 of the Income Tax Act 2007, means the date on which the deposit is made, unless the Commissioner refunds the deposit as required by section RP 18(5) of that Act, in which case there is not a date on which interest starts:
   6. for unpaid tax, being terminal tax for the tax year in which a taxpayer dies, the due date for the deceased person's terminal tax, if—
      1. each instalment of provisional tax payable by the deceased person for that tax year is paid by the due date under section RC 6 for the instalment; and
      2. the terminal tax payable by the deceased person for that tax year is paid by the due date under section RA 13 for the terminal tax:
   7. for unpaid tax, being terminal tax for which a taxpayer has a new due date for payment of the tax because section 142AC applies, means the day after the date fixed by the Commissioner under section 142AB(2) for the payment of the tax

   interest paid to a taxpayer means interest credited to, or dealt with in the interests of or on behalf of, the taxpayer; and interest paid and paid have corresponding meanings

   interest period—

   1. for unpaid tax, means the period beginning on the date interest starts and ending on the date the tax is paid or credited as paid (both dates inclusive):
   2. for overpaid tax, means the period (both dates inclusive) beginning on the date interest starts and ending on the earlier of—
      1. the date the tax is refunded by the Commissioner; and
      2. the date the tax is applied by the Commissioner towards meeting another tax liability

   tax paid, at a time, means—

   1. an amount of tax that—
      1. is paid or credited by the time for a tax liability; and
      2. has not been refunded or applied by the Commissioner to satisfy another tax liability:
   2. an amount credited by the time to a tax pooling account under sections RP 17 to RP 21 of the Income Tax Act 2007:
   3. an amount credited or transferred by the time to a taxpayer's account with the Commissioner from a tax pooling account under sections RP 17 to RP 21 of that Act

   tax payable, at any time, means the amount of tax payable in respect of a tax liability by that time, determined in accordance with the tax laws; and includes an amount of tax that must be withheld or deducted under a tax law and paid to the Commissioner

   taxpayer's paying rate means the rate of interest established and notified as the taxpayer's paying rate by an Order in Council made under section 120H.

2. For the purposes of this Part, where, at any time,—

3. the tax paid by a taxpayer exceeds the tax payable, the excess is overpaid tax; and
4. the tax payable by a taxpayer exceeds the tax paid, the excess is unpaid tax.

5. In the definition of tax paid, paragraph (a)(i) includes tax paid in excess that is applied under either section MZ 5 or section MZ 6 of the Income Tax Act 2004.