Section RM 16 — Income Tax Act 2007: Treatment of amounts not refunded

RM 16 Treatment of amounts not refunded When this section applies (1) This section applies when, through the application of sections RM 13 and RM 14 , an overpayment of income tax by a company is not refunded to the company or transferred within a wholly-owned group of companies. Satisfying liabilities or retained (2) The amount prevented from being a refund or transfer— (a) is applied to satisfy an income tax or provisional tax liability of the company for the tax year of the entitlement; and (b) may be used by the company to satisfy an income tax or provisional tax liability for a tax year other than the tax year of entitlement; and (c) is retained in the company’s tax account with the Commissioner to the extent to which paragraphs (a) and (b) do not apply, whether because the company is liquidated or for another reason. Credit for provisional tax (3) Despite subsection (2), the amount may be credited on a provisional tax instalment date if residual income tax is treated under section 120K of the Tax Administration Act 1994 as payable on the date set out in Part 7 of that Act. Relationship with section RZ 6 (4) Section RZ 6 (Limits on refunds: transitional dates) overrides subsection (2)(c). Defined in this Act: amount , Commissioner , company , income tax , income tax liability , instalment date , liquidation , pay , provisional tax , residual income tax , tax account with the Commissioner , tax year , wholly-owned group of companies , Compare: 2004 No 35 s MD 2(5), (5A)