Section RM 20 — Income Tax Act 2007: Treatment of amounts not refunded

RM 20 Treatment of amounts not refunded When this section applies (1) This section applies when, through the application of section RM 18(1) , an overpayment is not refunded. Satisfying liabilities or retained (2) The amount prevented from being a refund is— (a) applied to satisfy an income tax or provisional tax liability of the company for the tax year of an entitlement to a refund or FDP for a foreign dividend that is payable after the date on which the entitlement to the refund arises; and (b) retained by the Commissioner to the extent to which paragraph (a) does 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 120KE(5) to (7) of the Tax Administration Act 1994 as payable on the date set out in Part 7 of that Act. Defined in this Act: amount , Commissioner , company , foreign dividend , FDP , income tax liability , instalment date , liquidation , pay , provisional tax , residual income tax , tax year , Compare: 2004 No 35 s NH 4(4)(b)