AWIR: The third time | Environmental measures | Directors and board members | Tax Bill

Third time, hopefully the last time

For the third time in less than two months, and hopefully the last for some time to come now, we have seen an emergency event declaration, this time in relation to Cyclone Gabrielle.

The Tax Administration (February Cyclone Event) Order 2023 (SL 2023/10) came into force on 20 February 2023, and declares the February Cyclone Event to be an emergency event for the purpose of section 183ABA of the Tax Administration Act 1994 (TAA94).

The February Cyclone Event means all or any of the flooding or other damage that occurred as a result of Cyclone Gabrielle during the period starting on 12 February 2023 and ending on 16 February 2023. The affected areas being Northland, Auckland, Waikato, Bay of Plenty, Gisborne and Hawke’s Bay regions, and Tararua district.

The Order enables Inland Revenue (IR) to remit interest charges on late payments of tax, and it applies to taxpayers who are significantly adversely affected by the February Cyclone Event in respect of making a payment required by the due date.

If you or your clients have been affected by Cyclone Gabrielle, which resulted in a tax payment being late, then you can apply to IR for any UOMI to be remitted, which IR will do if they consider:

  • it is equitable that the interest be remitted;
  • the taxpayer asked for the relief as soon as practicable; and,
  • the taxpayer made the payment as soon as practicable.

The Order expires and is revoked on the close of 30 June 2023.