We've fixed an issue when a GST and provisional tax return - GST103 is filed, or a GST103 is expected to be filed, where any refund was automatically offset against any compulsory provisional tax instalment. This happened even with $0.00 entered into box 25 (refund to be transferred to provisional tax) of the return. Going forward, we will only transfer the amount requested within the return (box 25). We will however automatically transfer any credit to any outstanding liabilities from their due date.
If you (or a client) have made or arranged payment for provisional tax due and had a GST refund transferred to provisional tax before this issue was fixed, send us a message in myIR and we will reverse the transfer or refund any excess credits where appropriate.