Section RC 6 — Income Tax Act 2007: Standard method

RC 6 Standard method When this section applies (1) This section applies to a person liable to pay provisional tax for the purposes of section RC 5(2) and (3) and the calculation of the amount of provisional tax payable for a tax year under the standard method. Assessment for preceding tax year (2) The person’s residual income tax for a tax year is based on their assessment for the preceding tax year unless the Commissioner has sent out a notice of assessment for the tax year at least 30 days before the relevant instalment date, in which case the amount of residual income tax is based on the Commissioner’s assessment for the preceding tax year. Commissioner’s assessment for preceding tax year (3) The person’s residual income tax is based on the Commissioner’s assessment for the preceding tax year, whenever the assessment is made, if— (a) they are required under sections 33 and 37 of the Tax Administration Act 1994 to provide a return of income for the preceding tax year but have failed to do so by the relevant instalment date; or (b) they are not required under sections 33 and 37 of that Act to provide a return by the relevant instalment date, and subsections (2) and (4) do not apply. Residual income tax for preceding tax year (4) The amount of provisional tax payable for a tax year is the amount of the person’s residual income tax for the preceding tax year if— (a) they are not required to provide a return of income for the preceding tax year; or (b) their residual income tax for the tax year before the preceding tax year was $2,500 or less, and they were not required to provide, and have not provided, a return of income for the tax year by the date of instalment F for the corresponding income year. Later increased assessment (5) If the Commissioner’s assessment of a person’s income tax liability occurs after the payment date for an instalment of provisional tax and would result in an increase in the person’s residual income tax for the preceding tax year, the residual income tax is treated for the purposes of the provisional tax rules as if it had not been increased. Transitional years and consolidated groups (6) A person’s residual income tax in a transitional year is calculated under section RC 20 . For consolidated groups, the calculation is made under section RC 29 . Defined in this Act: amount , assessment , Commissioner , consolidated group , corresponding income year , income tax liability , instalment date , notice , pay , provisional tax , provisional tax rules , residual income tax , return of income , tax year , transitional year , Compare: 2004 No 35 s MB 5