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How much use-of-money interest did BGRL pay

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Question - The Big Green Restaurant Limited (BGRL), a New Zealand tax resident company, filed its income tax return for the year ended 31 March 2019 on 31 March 2020, showing residual income tax of $210,000. BGRL had an extension of time arrangement for filing its 2019 tax return.

Before the due date for the second installment of provisional tax for the 2019 tax year, BGRL's tax agent filed an estimate with Inland Revenue (IR) for residual income tax of $180,000. BGRL made the following tax payments for the 2019 income year:

Installment date and Amount $

28 August 2018 60,000

15 January 2019 40,000

7 May 2019 80,000

7 April 2020 30,000

Total 210,000

How much use-of-money interest (UOMI) did BGRL pay in relation to its 2019 tax liability, as determined by its 2019 income tax return?

A. $3,618.

B. $3,594.

C. $63.

D. $2,294.

Reference no: EM132675642

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