2006 media releases

Inland Revenue can offer help to weather-affected businesses
19 June 2006

Inland Revenue today outlined the help it can offer to victims of recent extreme weather in the South Island.

"Inland Revenue understands that, because of the snow, many people in south and mid Canterbury may be facing difficulties with their homes, businesses and farms," says Maurice Lawlor, Service Centre Manager in the South Island.

Child support customers and taxpayers with GST or PAYE tax due are urged to contact their accountant, tax agent, or Inland Revenue as soon as possible if they are going to have difficulty making payments.

"We have flexibility within the legislation to take account of individual circumstances when there have been extreme events like the recent storms," says Mr Lawlor.

"We recognise that with power and telephone lines down, some people may have had problems with accessing their computer files and with on-line filing. If this is the case, we ask that they contact us as soon as possible to discuss their options."

For more information and to discuss their personal situation, taxpayers should call 0800 473 566.

How Inland Revenue can help

Late payment and late filing

Inland Revenue understands that it may take some time for farmers and business taxpayers to be in a position to meet their tax obligations and will approach each situation on a case-by-case basis.

If anyone is unable to make their tax payments in full by the due date, we would encourage them to contact us and discuss the options available.

If taxpayers have tax outstanding and do not make payments, penalties and, in some cases, interest are charged. However, in most cases, it is possible to set up an instalment arrangement for payment. Where an instalment arrangement is agreed to before the tax becomes due there will also be a reduction in the initial penalty. Temporary or permanent relief from the payment of tax may also be a possibility.

GST refunds

Those expecting a refund, and who urgently need the money, should contact Inland Revenue on 0800 473 566.

Those expecting a GST refund may wish to consider altering their taxable period to either a two or one month return. This will allow them to receive refunds at more regular intervals. Any change will be effective from when the department actions their request, so they should advise us as soon as possible if they wish to do this.

However, if they are expecting to have a payment to make, and are unable to do so in full, please contact us so that we can set up an instalment arrangement.

Family Assistance

This is assistance that is either paid fortnightly to families based on an estimated annual family income, and the number of children in the family, or as a lump sum when the income tax return is filed at the end of the year.

Those receiving this at the end of the year may wish to consider receiving their entitlement fortnightly instead. If their income has gone down and they have never previously claimed, they may wish to apply by completing an FS1 application form.

The In Work Payment is paid in addition to family support where a parent is in work and certain criteria are met. It is possible that with the recent increases in family assistance and raising of the income levels at which the payments stop, they may now be entitled to receive some Family Assistance.

Review of other matters

Inland Revenue is also looking at other issues, including:

• remission of penalties and interest on late GST, PAYE etc returns and payments
• deductibility of snow damage repairs, replacement of plant etc
• spreading forward farm income
• treatment of insurance proceeds and other compensations
• child support payments/debt
• hardship tax debt relief.

Free tax advice available

Advisory and information services are also available to taxpayers to make it easier to receive full entitlements to any credits while still meeting their taxation obligations.  Our Business Tax Information Officers and Maori Community Officers provide free tax information on:

• how to complete returns/forms and other tax obligations
• what expenses can be claimed
• record keeping
• payment of tax, and
• other information tailored to specific situations.

To make an appointment with one of our officers, please contact us on 0800 377 772.

Other media releases this year

• It's IR 3 time - for many of us
• Owner of chain of rest homes get 21-month prison term for million dollar tax evasion
• Family assistance payments to be made early
• Inland Revenue welcomes tough sentence on tax fraudster
• False identity charges lead to jail term for Christchurch woman
• PAYE evasion leads to jail term
• Family assistance payments to be made early
• Inland Revenue welcomes Govt3 award wins
• PAYE Subsidy available for employers
• One month left to seek penalty cancellations
• Christchurch painter jailed on tax charges
• Prison for Tauranga contractor on tax fraud charges
• Inland Revenue confirms stand on depreciation
• Family Assistance payments to be made early
• Tax discount for new businesses
• Tauranga contractor jailed for tax offences
• Inland Revenue revises rules on shortfall penalty application
• Inland Revenue Flood Support
• Family Assistance to be paid early
• Inland Revenue website wins People's Choice award
• Tax due date coming up on 7 February
• Family assistance payments to be made early

more media releases ›

Corporate Affairs
Inland Revenue

To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.

P O Box 2198
Wellington 6140
New Zealand

Date published: 19 Jun 2006

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