As we have all heard, Cyclone Gabriel inflicted significant damage in various parts of NZ. Due to the severity of the event the government declared a national state of emergency.
What does this mean in terms of tax payments?
Those severely affected by the cyclone will likely be suffering from damage and disruption to their normal operations. As a result, they may not be able to submit their tax payments within the deadline. Under S 183BA of the TAA, those experiencing difficulty due to the cyclone may ask the Commissioner of IRD to remit the interest charged for failure of timely payment.
The commissioner will remit this interest if:
- It is equitable for the interest to be remitted
- The taxpayer asked for the relief as soon as practicable
- The taxpayer made the payment as soon as practicable
Who is eligible?
Those that have suffered from flooding or any other damage inflicted by the cyclone event between the 12th of February and 16th of February 2023 are eligible for the interest remission. The interest remission order applies in the following regions:
- Auckland
- Bay of Plenty
- Gisborne
- Hawkes Bay
- Northland
- Tararua
- Waikato region
Effective Date
This order expires on the 30th of June 2023. If you have been affected by the cyclone and require assistance with tax remission get in touch below, we would love to help.
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