Section RC 10 — Income Tax Act 2007: Calculating amount of instalment under standard and estimation methods

RC 10 Calculating amount of instalment under standard and estimation methods When this section applies (1) This section applies for the purposes of— (a) section RC 5(2), (3), and (5) (which relates to the calculation of a provisional tax liability); and (b) section RC 9(3) and (5) (which relates to payment of instalments); and (c) sections RC 13 and RC 14 (which relate to persons with an initial provisional tax liability and those with an extension of time for providing a return); and (d) sections RC 26 and RC 27 (which relate to changes in taxable periods). Calculation (2) The amount of an instalment of provisional tax is calculated using the formula— residual income tax × instalment number − provisional tax. total instalments Definition of items in formula (3) In the formula,— (a) residual income tax is a person’s residual income tax, as applicable— (i) for the preceding tax year, uplifted by 5% (modified as applicable by sections RZ 5 (Calculating amounts under standard method: 2010–11 to 2012–13 income years) and RZ 5D (Standard method or GST method: transition for Maori authorities); or (ii) for the tax year before the preceding tax year, uplifted by 10% (modified as applicable by sections RZ 5 and RZ 5D ); or (iii) the amount estimated by them: (b) instalment number is the number of the instalment for the tax year, whether first, second, or third: (c) total instalments is the total number of instalments for the tax year: (d) provisional tax is the amount of a person’s provisional tax liabilities for the tax year to date. Instalment amounts after change in balance date or taxable period (4) If a change occurs to the balance date or cycle of a person’s taxable periods, the calculation of the amount of an instalment is made under this section, applying the updated figures to the items in the formula. Defined in this Act: amount , balance date , initial provisional tax liability , pay , provisional tax , residual income tax , return of income , tax year , taxable period , Compare: 2004 No 35 s MB 9 Section RC 10(1)(b): amended, on 1 April 2008, by section 530 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section RC 10(3)(a)(i): amended (with effect on 1 October 2010), on 21 December 2010, by section 123(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section RC 10(3)(a)(i): amended, on 1 October 2010, by section 27(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section RC 10(3)(a)(i): amended, on 1 October 2008, by section 41(a) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section RC 10(3)(a)(ii): amended (with effect on 1 October 2010), on 21 December 2010, by section 123(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section RC 10(3)(a)(ii): amended, on 1 October 2010, by section 27(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section RC 10(3)(a)(ii): amended, on 1 October 2008, by section 41(b) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).