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Tax Administration Act 1994

Interest - Specific provisions

120KC: Residual income tax of new provisional taxpayer

You could also call this:

"Paying residual income tax in instalments for your income year"

Illustration for Tax Administration Act 1994

You have to pay residual income tax. This tax is due and payable in instalments. The instalments are paid on certain dates. You pay residual income tax in 3 equal instalments if section RC 9(9)(a) of the Income Tax Act 2007 applies. You pay in 2 equal instalments if section RC 9(9)(b)(i) or section RC 9(9)(b)(ii) applies. You pay in 1 instalment if section RC 9(9)(c) applies. The instalment dates are in Schedule 3, Part A of the Income Tax Act 2007. These dates are when you pay provisional tax for your income year. The tax year and income year are related.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM355313.

Topics:
Money and consumer rights > Taxes
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"Interest on unpaid provisional tax for people using the AIM payment method"

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120KD: Provisional tax instalments in transitional years, or

"Paying provisional tax in smaller parts during a special year"

Part 7Interest
Specific provisions

120KCResidual income tax of new provisional taxpayer

  1. In a tax year other than a transitional year, and for the purposes of this Part, a new provisional taxpayer's residual income tax is treated as due and payable—

  2. in 3 equal instalments on the interest instalment dates B, D, and F for the taxpayer's corresponding income year, if section RC 9(9)(a) of the Income Tax Act 2007 applies:
    1. in 2 equal instalments on the interest instalment dates, for the corresponding year,—
      1. D and F, if section RC 9(9)(b)(i) applies; or
        1. C and F, if section RC 9(9)(b)(ii) applies:
        2. in 1 instalment on the interest instalment date F for the taxpayer's corresponding income year, if section RC 9(9)(c) of that Act applies.

          1. In this section, a reference to an instalment classified by the alphanumeric designations A to F1 is a reference to an instalment date in the table in Schedule 3, Part A of the Income Tax Act 2007 on which an instalment of provisional tax is payable by a provisional taxpayer for an income year that corresponds to a tax year.

          Notes
          • Section 120KC: inserted, on (applying for income years corresponding to 2008–09 and subsequent tax years), by section 243(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
          • Section 120KC(1)(a): 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 120KC(1)(b): replaced (with effect on 1 October 2007), on (applying for 2008–09 and later income years), by section 236(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
          • Section 120KC(1)(c): 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 120KC(2): amended, on (applying for the 2018–19 and later income years), by section 55(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
          • Section 120KC(2): 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 120KC example: replaced, on (applying for 2008–09 and later income years), by section 196(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
          • Section 120KC example heading: replaced (with effect on 1 October 2007), on , by section 237 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
          • Section 120KC example: amended (with effect on 1 April 2008), on (applying for 2008–09 and later income years), by section 664(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).