Section RC 11 — Income Tax Act 2007: Calculating amount of instalment using GST ratio

RC 11 Calculating amount of instalment using GST ratio Calculation (1) For a person who uses a GST ratio, the amount of provisional tax payable on an instalment date for a tax year is calculated using the formula— GST ratio for tax year × total taxable supplies. Definition of item in formula (2) In the formula, total taxable supplies is the amount of the person’s total taxable supplies in the taxable period that matches the instalment period. Taxable supplies when person pays on monthly basis (3) For the purposes of subsection (1), a person who pays GST on a 1-month cycle under section 15 of the Goods and Services Tax Act 1985 must apply the GST ratio to the sum of their taxable supplies in the current taxable period and the preceding taxable period, that is, the taxable supplies in the 2-month period matching the instalment period. Modification (4) Sections RZ 4 (GST ratio method: 2010–11 to 2013–14 income years) and RZ 5D (Standard method or GST method: transition for Maori authorities) modify this section. Defined in this Act: amount , GST , GST ratio , instalment date , pay , provisional tax , tax year , taxable period , taxable supply , total taxable supplies , Compare: 2004 No 35 s MB 10 Section RC 11(4): amended (with effect on 1 October 2010), on 21 December 2010, by section 124 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section RC 11(4): amended, on 1 October 2010, by section 28 of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section RC 11(4): amended, on 1 October 2008, by section 42 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).