Tax Payments - when received in time (Dec 03) (WITHDRAWN)

Tax payments - when received in time

This statement also appears in Tax Information Bulletin Vol 15, No 12 (December 2003).

Introduction

1. This Standard Practice Statement (SPS) sets out the Commissioner's practice for accepting tax payments as having been made in time.

Application

2. This SPS replaces SPS PRC-100 Tax payments - when received in time and will apply from 19 December 2003.

Background

3. SPS PRC-100 Tax payments - when received in time (Tax Information Bulletin Vol 10, No 4 (April 1998)) set out when the Commissioner would accept payments as having been made in time.  Since that publication there have been changes in the way taxpayers make payments to Inland Revenue.  The purpose of this SPS is to reflect those changes and inform taxpayers when a payment will be accepted as having been made in time.
   
   
4. This SPS refers to:
   • Payments by post
   • Electronic payments
   • Physical delivery
   • Post-dated cheques
   • Weekends and public holidays
   • Tax pooling, and
   • Tax transfers.
     

Standard Practice

5. This standard practice applies to all tax types, including Goods and Services Tax (GST) and Child Support payments.

Payments by post

6. Payments will be accepted as being received in time if mailed and postmarked on or by the due date.
   
   
7. For Rural Delivery taxpayers, the date of payment is when it is received by New Zealand Post or similar provider.  It is not when the payment is placed in the taxpayer's personal mail box for collection.

Overseas payments

8. An overseas postmark cannot be used to determine the date a payment was received by Inland Revenue from a taxpayer living or working overseas.  Accordingly, normally the time of actual receipt by Inland Revenue will be used.

Electronic payments

9. Taxpayers may make payments electronically, including internet banking.  A payment will be received in time when it has been electronically paid or direct credited into an Inland Revenue account either on or before the due date.  Internet payments must be completed prior to the end of the banks' online business hours to be recorded as received on that specific day.  Internet payments after these online business hours will be processed on the next business day. 
   
   
10. In the context of electronic payments, "business hours" means the hours a bank makes available to customers to initiate electronic payments on any given day.  Payments made after these hours will be processed by the bank as at the next business day.

Overseas payments

11. A payment will be received in time when it has been electronically paid or direct credited into an Inland Revenue account either on or before the New Zealand due date.

Physical delivery

12. A payment will be accepted as being received in time if it is deposited into an Inland Revenue drop box by the close of business on the due date. 

Westpac payments

13. Taxpayers may also make payments at most branches of Westpac.  Payments can be made over the counter or via drop boxes.  The payment is received in time if it is physically handed into a Westpac branch by the close of business on the due date.

Post-dated cheques

14. Inland Revenue will not bank post-dated cheques until the specified date. A cheque that is post-dated after the due date, even though it is received on or before the due date, will be treated as late.  This applies to payments that are posted or physically delivered.

Weekends and public holidays

15. If a due date falls on a weekend or a public holiday (including a provincial anniversary day), Inland Revenue will accept a payment without charging a penalty when it is handed in or posted on the next working day.

Electronic payments

16. If a due date falls on a weekend or a public holiday (including a provincial anniversary day), then an electronic payment will be accepted as in time when it is credited into an Inland Revenue account on the next working day.

GST payments

17. Payments will be accepted as being received in time if mailed and postmarked on or by the due date.  GST payments are due on the last working day of the month.  There is one exception to the GST rule.  GST payments, which would normally be due on the last working day of December, are due on 15 January.

Tax pooling

18. In cases of tax pooling, the date of payment is when the intermediary makes the tax payment to Inland Revenue.  For more information on the implications of tax pooling please refer to Tax Information Bulletin Vol 15, No 5 (May 2003).

Tax Transfers

19. For the rules regarding the transfers of overpaid taxes please refer to Tax Information Bulletin Vol 14, No 11 (November 2002).

This Standard Practice Statement was signed by me on 10 December 2003.

Margaret Cotton
National Manager (Technical Standards)