Section RC 17 — Income Tax Act 2007: When GST ratio must not be used

RC 17 When GST ratio must not be used Requirement to discontinue use of GST ratio (1) Despite section RC 16 , a person must stop using a GST ratio for a tax year and must apply section RC 18(4) or (5) if— (a) their GST registration ends under section 52 of the Goods and Services Tax Act 1985 in the tax year; or (b) they no longer qualify under section RC 16(2) as a result of an amended assessment of their income tax liability or their GST liability for the preceding tax year; or (c) they no longer qualify under section RC 16(3) as a result of a change in their taxable period. No GST return (2) A person must not use, or must stop using, a GST ratio for a tax year if they— (a) are liable to provide a return under the Goods and Services Tax Act 1985 for a period in their corresponding income year; and (b) do not file the return within 60 days after the due date for filing the return. Instalments following default (3) A person who is required by subsection (2) to stop using a GST ratio must pay the provisional tax instalments required under section RC 18 for an instalment period beginning on or after the due date for filing the return referred to in subsection (2) that is not the subject of notification under subsection (4). Further use of GST ratio (4) Despite subsections (2) and (3), a person may use a GST ratio for an instalment period referred to in subsection (3) if— (a) they apply in writing or by telephone to the Commissioner; and (b) the Commissioner considers— (i) the failure to file the return is caused by an event or circumstance beyond the person’s control; and (ii) the event or circumstance provides reasonable justification or excuse for the failure; and (iii) the person remedied the failure as soon as practicable; and (c) the Commissioner notifies the person that they may use the GST ratio for the instalment period. Standard required (5) For the purposes of subsection (4)(b), the Commissioner must use the same approach that would be used to justify the remission of a penalty under section 183A of the Tax Administration Act 1994. Later default (6) Notification under subsection (4) does not apply to an instalment period if— (a) the person fails to file a return due after the date of the notice unless the failure is anticipated and referred to in the notice; and (b) the instalment period begins on or after the due date of the return described in paragraph (a). Defined in this Act: assessment , Commissioner , corresponding income year , GST ratio , income tax liability , notify , pay , provisional tax , tax year , taxable period , Compare: 2004 No 35 s MB 15(5)–(10) Section RC 17(4)(a): amended, on 1 April 2008, by section 532 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).