183ABACRemission of interest on residual income tax for 2020–2021 or 2021–2022 tax year for provisional taxpayers affected by COVID-19

1. This section applies for a taxpayer who is liable to pay provisional tax for the 2020–21 or 2021–22 tax year (the affected tax year) if—

2. the taxpayer, for the affected tax year,—
   1. makes an estimate under section RC 7 of the Income Tax Act 2007 on or before their last instalment date for the affected tax year; or
   2. makes an election under section RC 10(5) of that Act; or
   3. does not make an election under section RC 10(5) of that Act, but meets the criteria set out in section 120KE(1)(b) to (e); and
3. the taxpayer’s residual income tax for the affected tax year is less than $1 million; and
4. the taxpayer is charged with interest under Part 7—
   1. on an amount of residual income tax payable for the affected tax year; and
   2. that begins to accrue before the taxpayer’s terminal tax date for the affected tax year; and
5. the taxpayer’s ability to make a reasonably accurate forecast, on 1 or more provisional tax instalment dates for the affected tax year, of their residual income tax for the affected tax year was significantly adversely affected by COVID-19 and, as a consequence, the taxpayer failed to pay the relevant portions of the amount by the relevant instalment dates; and
6. the requirement to pay the amount does not arise from an election under section IZ 8 of the Income Tax Act 2007 by the taxpayer, or by a company in the same group of companies as the taxpayer.

7. The taxpayer may ask the Commissioner to remit interest accrued between the 31 March before the affected tax year and the taxpayer’s terminal tax date for the affected tax year, both dates inclusive (the interest), on the amount.

8. The Commissioner may remit the interest if the Commissioner is satisfied that the taxpayer—

9. asked for the relief as soon as practicable; and
10. has paid their residual income tax for the affected tax year.

11. This section does not limit section 183ABAB.