Tax Administration Act 1994

173P Transfer of excess provisional tax if provisional tax paid is more than taxpayer's provisional tax liability, determined before assessment

• (1) This section applies in respect of excess provisional tax if—

  • (a) a taxpayer or their agent requests a transfer allowed by section 173L, section 173M(2)(a) to 173M(2)(f), or section 173M(3); and

  • (b) on the date that the Commissioner actions the request, the taxpayer has paid more provisional tax for a tax year than the provisional tax payable by that date; and

  • (c) the request is actioned before an assessment is made under Part 6.

  (2) The excess provisional tax that may be transferred on a particular date (date A) is calculated according to the formula:

  provisional tax paid − refunds − provisional tax liability

  where—

  • provisional tax paid  is the provisional tax paid for a tax year on or before date A, including:

  • (a) voluntary payments made under section RC 12 of the Income Tax Act 2007; and

  • (b) tax transferred to the taxpayer:

  • refunds are the refunds of the provisional tax that are paid to the taxpayer on or before date A, including transfers by the taxpayer or offsets by the Commissioner against unpaid tax

  • provisional tax liability is the provisional tax payable by date A.

  (3) The Commissioner must not transfer an amount on date A if, as a result, the taxpayer would not satisfy their provisional tax liability in respect of the tax year on a date (date B) that falls after date A, unless the taxpayer requests a transfer back to their account to satisfy their provisional tax liability on date B.

  Section 173P: inserted, on 17 October 2002, by section 91(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).

  Section 173P(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

  Section 173P(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

  Section 173P(2) formula item provisional tax paid paragraph (a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

  Section 173P(3): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).