Section HM 73 — Income Tax Act 2007: Transition: provisional tax

HM 73 Transition: provisional tax When this section applies (1) This section applies when an entity chooses to become a PIE in an income year and has an increased liability for provisional tax for the income year because of the election. Penalties and interest (2) The entity is not liable to pay any penalty or interest for which it would otherwise be liable for an inaccuracy arising from the increased liability in— (a) an estimate of provisional tax made before the election: (b) a payment of provisional tax due before the end of the 2-month period that starts when the election takes effect. Tax liability (3) An entity that becomes a PIE in a tax year and is liable to pay an amount of income tax because of the disposal and reacquisition referred to in section HM 75 may satisfy the tax liability by paying the Commissioner at least— (a) one third of the liability in the tax year; and (b) one half of the balance remaining after a payment under paragraph (a) in the tax year after that in which the entity became a PIE; and (c) the balance owing after the payments under paragraphs (a) and (b) in the second tax year after that in which the entity became a PIE. Defined in this Act: amount , Commissioner , income tax , income year , pay , PIE , provisional tax , tax year Compare: 2007 No 97 s HL 14 Section HM 73: 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).