Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020

224 Section 120L amended (Meaning of unpaid tax and overpaid tax for provisional tax purposes)

(1)

Replace section 120L(2) with:

(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.

(2)

After section 120L(2), insert:

(2B)

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

(3)

(4)

Subsections (1) and (3) apply for the 2018–19 and later income years but excluding payments that have been applied before the introduction of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill towards provisional tax.

(5)

Subsection (2) applies for the 2020–21 and later income years.