Section HM 44 — Income Tax Act 2007: Provisional tax calculation option

HM 44 Provisional tax calculation option When this section applies (1) This section applies when a multi-rate PIE chooses to calculate its income tax liability on an income year basis and pay provisional tax by notifying the Commissioner before the start of the income year or when choosing to become a PIE. Notification regarding the type of PIE and attribution period is made under section 31B of the Tax Administration Act 1994. When this section does not apply (1B) Despite subsection (1), a multi-rate PIE that chooses under section HM 71B to become a foreign investment PIE must not apply this section to calculate and pay its income tax liability. Application of subparts RB and RC (2) The PIE must calculate its tax liability for the income year corresponding to the tax year under section HM 47 and pay provisional tax for the tax year as required by subpart RC (Provisional tax) and terminal tax for the tax year as required by subpart RB (Terminal tax). Treatment of losses (3) If the calculation of the liability results in a negative amount, the loss must be carried forward to a later tax year, and section HM 64 does not apply. Defined in this Act: foreign investment PIE , income tax liability , income year , multi-rate PIE , notify , pay , PIE , provisional tax , tax year Compare: 2007 No 97 s HL 23(1), (2) Section HM 44: inserted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 292(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section HM 44(1B) heading: inserted, on 29 August 2011, by section 73(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 44(1B): inserted, on 29 August 2011, by section 73(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 44 list of defined terms foreign investment PIE : inserted, on 29 August 2011, by section 73(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).