Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill

125 Section 120KBB amended (Interest for most standard method and some estimation method provisional taxpayers)

(1)

In section 120KBB(3)(a), replace “an instalment” with “those instalments”.

(2)

In section 120KBB(3)(b), replace “an instalment” with “each of those instalments”.

(3)

In section 120KBB(3)(b)(ii), replace “date.” with “date; and”, and insert:

(c)

the amount of unpaid tax that a person has in relation to the final instalment is equal to the amount given by section 120KB(2) less the total amount paid for earlier instalments in the tax year. A negative amount is overpaid tax on the final instalment.

(3B)

After section 120KBB(3), insert:

(3B)

For a person who uses the standard method, use of money interest and penalties for provisional tax under Parts 7 and 9 are calculated using the lowest of the amounts under sections RC 5(2) and (3) of the Income Tax Act 2007, for instalment dates prior to the date that the taxpayer provides a return of income for the year before the current income year.

(4)

Repeal section 120KBB(4)(a)(ii).

(5)

Subsections (1), (2), and (3) apply for the 2017–18 and later income years.

(5B)

Subsection (3B) applies for the 201819 and later income years.

(6)

Subsection (4) applies for the 2019–20 and later income years.