Section RC 21 — Income Tax Act 2007: Paying provisional tax in transitional years

RC 21 Paying provisional tax in transitional years Total amount payable (1) A person liable to pay provisional tax in a transitional year must pay the sum of all instalments of provisional tax payable for the transitional year, both interim instalments under subsection (2) and a final instalment under subsection (3). When instalments payable (2) The person must pay an instalment other than a final instalment on— (a) the 28th day of the months set out in schedule 3, part B (Payment of provisional tax and terminal tax) unless paragraph (b) or (c) applies: (b) 15 January, when the month set out in schedule 3, part B is December and the year is a transitional year: (c) 7 May, when the month set out in schedule 3, part B is April and the year is a transitional year. When final instalment payable (3) The person must pay the final instalment on— (a) the 28th day of the month following the final month in the transitional year; or (b) the 15th day of January, when November is the final month; or (c) 7 May, when March is the final month and the year is a transitional year. Modifications to instalment dates (4) For the purposes of subsection (2), provisional tax is not payable on— (a) the date of instalment B, if section RC 13 would have applied if the year were not a transitional year; or (b) the dates of instalments B and D, if section RC 14(1)(a) and (b) would have applied if the year were not a transitional year; or (c) the dates of instalments B, D, and F, if the person liable to pay provisional tax is a person with an initial provisional tax liability whose first business day occurs within 30 days of the date of instalment F; or (d) the date of instalment C, if section RC 14(1)(c) would have applied if the year were not a transitional year; or (e) the dates of instalments C and F, if the person liable to pay provisional tax is a person with an initial provisional tax liability who pays GST on a 6-monthly basis whose first business day occurs after the day that is 30 days before the date of instalment F. Counting months in transitional years (5) In this section, and in sections RC 22 to RC 25 , and in schedule 3, part B , the number of months in a transitional year is determined as follows: (a) the first month in a person’s transitional year is the first whole month in the transitional year: (b) the final month in a person’s transitional year is the month in which their new balance date under section 39 of the Tax Administration Act 1994 occurs: (c) each month falling between the first and final months must be included in determining the length of the transitional year. Defined in this Act: balance date , final instalment , first business day , GST , initial provisional tax liability , pay , provisional tax , transitional year , year , Compare: 2004 No 35 s MB 20 Section RC 21(2)(a): substituted, on 1 April 2008, by section 535(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section RC 21(2)(b): substituted, on 1 April 2008, by section 535(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section RC 21(2)(c): added, on 1 April 2008, by section 535(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section RC 21(3)(b): amended, on 1 April 2008, by section 535(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section RC 21(3)(c): added, on 1 April 2008, by section 535(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).