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Tax Administration Act 1994

Transfers of excess tax - Application of transfer rules to excess provisional tax

173R: Transfer of excess tax if provisional tax is more than taxpayer's residual income tax, determined after assessment

You could also call this:

"Getting a refund if you pay too much provisional tax"

Illustration for Tax Administration Act 1994

You pay provisional tax during the year. If you pay too much, you can transfer the excess to another account. This happens when you or your agent asks to transfer the excess tax, as allowed by section 173L, section 173M(2)(a) to 173M(2)(f), or section 173M(3), and you have paid more provisional tax than your residual income tax for a tax year. The excess tax is calculated by subtracting refunds and residual income tax from the provisional tax paid.

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Topics:
Money and consumer rights > Taxes
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173Q: Transfer of excess provisional tax if taxpayer estimates or revises estimate of residual income tax, determined before assessment, or

"Transferring extra provisional tax you've already paid"

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173S: Transfers of interest on overpaid tax, or

"Getting interest back on overpaid tax transferred to another time or tax type"

Part 10BTransfers of excess tax
Application of transfer rules to excess provisional tax

173RTransfer of excess tax if provisional tax is more than taxpayer's residual income tax, determined after assessment

  1. This section applies in respect of excess tax if—

  2. a taxpayer or their agent requests a transfer allowed by section 173L, section 173M(2)(a) to 173M(2)(f), or section 173M(3); and
    1. on the date that the Commissioner actions the request, the taxpayer has paid more provisional tax than the taxpayer's residual income tax for a tax year.

      1. The excess provisional tax that may be transferred on a particular date (date A) is calculated according to the formula:

        provisional tax paid − refunds − residual income tax

        Where:

        • The Commissioner must not transfer an amount on date A if, as a result, the taxpayer would be liable to pay interest on unpaid tax under Part 7 or would have a late payment penalty imposed under Part 9 in respect of their provisional tax payments for the tax year on a date (date B) that falls after date A, unless the taxpayer requests a transfer back to their account so as to prevent interest or a late payment penalty being imposed on date B in respect of their provisional tax payments.

        • The amount that may be transferred under subsection (2) may not be more than the net provisional tax paid for a tax year less the residual income tax for the year.

        Notes
        • Section 173R: inserted, on , by section 91(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
        • Section 173R(1)(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).
        • Section 173R(2) formula item provisional tax paid paragraph (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 173R(2) formula item residual income tax: amended, on (applying for income years corresponding to 2008–09 and subsequent tax years), by section 260(1)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
        • Section 173R(2): 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 173R(3): 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 173R(4): 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).