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Tax Administration Act 1994

Interest - Specific provisions

120M: Where provisional tax paid by company does not count as overpaid tax

You could also call this:

"When a company's provisional tax doesn't get refunded"

Illustration for Tax Administration Act 1994

You pay provisional tax if you think you will have to pay tax at the end of the year. If you pay too much provisional tax, it is called overpaid tax. You might get a refund for overpaid tax. You do not get a refund if you pay too much provisional tax and it is kept by the Commissioner under sections RM 13 to RM 17, RM 32, and RZ 6 of the Income Tax Act 2007. This happens when you would normally get a refund, but these sections say the Commissioner can keep the money. You also do not get a refund if you pay an instalment of provisional tax using further income tax, as stated in section RC 35 of the Income Tax Act 2007. This means you used other tax money to pay your provisional tax, so you will not get a refund for that amount.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM355320.

Topics:
Money and consumer rights > Taxes
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"What unpaid and overpaid tax means for some people using the AIM method"

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120N: Variation to definition of date interest starts for provisional tax, or

"When interest starts for provisional tax payments can be different in some cases"

Part 7Interest
Specific provisions

120MWhere provisional tax paid by company does not count as overpaid tax

  1. No amount of tax paid by a company is to be treated as overpaid tax to the extent that—

  2. the tax is provisional tax paid by the company for a tax year in excess of the company's residual income tax for the tax year, and is retained by the Commissioner under sections RM 13 to RM 17, RM 32, and RZ 6 of the Income Tax Act 2007 at any time after the company would, but for those sections, be entitled to a refund of the tax; or
    1. the tax would not be in excess of the company's residual income tax for a tax year, but for the payment of an instalment of provisional tax being satisfied by an amount of further income tax in accordance with section RC 35 of the Income Tax Act 2007.

      Notes
      • Section 120M: inserted, on , by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
      • Section 120M(a): amended (with effect on 1 April 2008), on , by section 665 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section 120M(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 120M(a): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
      • Section 120M(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 120M(b): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).