Section BC 8 — Income Tax Act 2007: Satisfaction of income tax liability

BC 8 Satisfaction of income tax liability Use of tax credits (1) Credits for tax paid, tax withheld, or other circumstances, calculated under Parts L (Tax credits and other credits) and M (Tax credits paid in cash), satisfy a person's income tax liability for a tax year as far as the credits extend. Ordering rule (2) The order in which the person uses their credits is set out in section LA 4 (When total tax credit more than income tax liability). Terminal tax (3) If the person's income tax liability is more than the total of their credits, the difference is the person's terminal tax . The person must pay the terminal tax to complete the satisfaction of their income tax liability. Remaining credits (4) The treatment of any credits remaining after the person's income tax liability is satisfied is dealt with in section LA 5 (Treatment of remaining credits). Defined in this Act: income tax liability , pay , tax , tax credit , tax year , terminal tax , Compare: 2004 No 35 s BC 9