Section RP 19B — Income Tax Act 2007: Transfers for certain expected tax liabilities

RP 19B Transfers for certain expected tax liabilities Who this section applies to (1) This section applies to a person who— (a) expects to have an income tax or provisional tax liability for a tax year; and (b) has acquired funds in a tax pooling account other than by depositing them on their own account; and (c) has not yet filed a return of income in relation to the liability for the tax year. Using funds (2) The person may choose to use the funds towards the payment of the liability for the tax year on meeting all the requirements of this section. Requirements at time of making request (3) At the time of making the request, the person must— (a) for an income tax liability, have met all their return filing requirements for earlier tax years: (b) for a provisional tax liability, have met all their obligations under the provisional tax rules for the tax year. Effective date of transfer (4) The effective date that the person nominates for the transfer of funds must correspond to the relevant instalment date set out in schedule 3 , part A (Payment of provisional tax and terminal tax). Refunds (5) If, as a result of a transfer under this section, excess tax arises for the person, the amount of excess tax is treated as follows: (a) first, the amount is transferred to meet a liability for the person, as applicable, for— (i) provisional tax or terminal tax under section RP 17B(4)(a) or (b) : (ii) an increased amount of tax under section RP 17B(5) : (iii) an obligation to pay deferrable tax under section RP 17B(6) : (b) second, the amount is transferred with an effective date that is no earlier than the date on which the Commissioner received the later request: (c) third, the amount is refunded to the person. Relationship with section RP 17B (6) This section overrides section RP 17B(7)(a) . Defined in this Act: amount , Commissioner , instalment date , provisional tax , provisional tax rules , return of income , tax pooling account , tax year , terminal tax Section RP 19B: inserted, on 29 August 2011, by section 128 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).