Whether section 183ABAB can provide relief from UOMI for provisional taxpayers depends on factors including the following.
- The date by which the tax was due to be paid (it must be on or after 14 February 2020).
- The balance date (this determines the due dates for provisional tax and terminal tax).
- The provisional tax method chosen or applied for the tax year (this determines the date UOMI will be charged from).
- When payments were made and how they were applied to amounts owing in the income tax account.
The following scenarios are intended to provide guidance for the most common situations that Inland Revenue has identified. The scenarios have been drafted based on current law and may change as a result of the additional legislation changes.
Further legislative changes made on 6 August 2020 provide UOMI relief for provisional taxpayers for the 2021 tax year in certain circumstances. This relief is in addition to any relief that may be available under section 183ABAB.
Section 183ABAB will be applied to provisional tax and terminal tax obligations for the 2020 and 2021 tax years. Information is also provided on provisional tax and UOMI which may be useful in considering provisional tax payment methods and UOMI consequences.
- Scenarios 1 and 2 explain how section 183ABAB applies to provisional tax instalments.
- Scenarios 3 to 8 explain how section 183ABAB applies to UOMI charged on terminal tax and how this is impacted by the method used to calculate provisional tax.
Where further scenarios and other information are identified these will be added as and when they are identified.