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 other than under the AIM method 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 other than under the AIM method, 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 an overpayment arises as a result of a transfer under this section, the amount of the overpayment is treated as follows:

(a)

first, the amount is transferred to meet a liability of the person for—

(i)

provisional tax (other than under the AIM method), terminal tax, and interest under Part 7 of the Tax Administration Act 1994, referred to in section RP 17B(4)(a) or (b):

(ii)

an amount referred to in section RP 17B(5) consisting of an increased amount of tax and interest payable under Part 7 of the Tax Administration Act 1994 on the increased amount of tax:

(iii)

an amount referred to in section RP 17B(6) consisting of deferrable tax, or agreed delay tax, and interest payable under Part 7 of the Tax Administration Act 1994 on the deferrable tax or agreed delay tax:

(b)

secondly, the amount is transferred with an effective date that is no earlier than the date on which the Commissioner received the later application:

(c)

thirdly, 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, apply, Commissioner, instalment date, provisional tax, provisional tax rules, request, 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).

Section RP 19B(1)(a): amended, on 1 April 2018, by section 45(1) (and see section 45(4) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Section RP 19B(3)(b): amended, on 1 April 2018, by section 45(2) (and see section 45(4) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Section RP 19B(5): replaced (with effect on 3 July 2014), on 24 February 2016, by section 232 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section RP 19B(5)(a)(i): replaced, on 1 April 2019, by section 274(1) (and see section 274(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section RP 19B(5)(b): amended, on 2 June 2016, by section 67(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section RP 19B list of defined terms apply: inserted, on 2 June 2016, by section 67(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section RP 19B list of defined terms request: inserted, on 2 June 2016, by section 67(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).