120L Meaning of unpaid tax and overpaid tax for provisional tax purposes

(1)

For the purposes of determining amounts of unpaid tax and overpaid tax in respect of instalment dates for a tax year, a taxpayer’s residual income tax is to be calculated in accordance with the definition of that term in section 120KB(4).

(2)

If a taxpayer makes a payment, the Commissioner must apply the payment towards the provisional tax that is due on the earliest instalment date on which there is an unpaid amount, and then in order from earliest to latest.

(2B)

For the purposes of this section, provisional tax includes late payment penalties charged in relation to the provisional tax.

(3)

[Repealed]

Section 120L: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).

Section 120L(1): amended, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 244(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).

Section 120L(1): 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 120L(2): replaced (with effect on 1 April 2018), on 23 March 2020, by section 224(1) (and see section 224(4) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 120L(2B): inserted, on 1 April 2020, by section 224(2) (and see section 224(5) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section 120L(3): repealed (with effect on 1 April 2018), on 23 March 2020, by section 224(3) (and see section 224(4) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).