If you are unable to pay your tax on time because you have been adversely affected by COVID-19, you can ask us to remit penalties and interest.
We can remit penalties and interest for tax payments that were due on or after 14 February 2020 up until 8 April 2024 (including provisional tax).
When we can remit penalties and UOMI
Contact us as soon as you know you will not be able to pay on time because of COVID-19. We can come to an arrangement with you on the understanding you'll still pay the tax you owe as soon as you can. To keep your business going, you may need to make arrangements with us to pay your tax owing over time.
Instalment arrangements for tax owing
You can apply for an instalment arrangement using the self-service instalment arrangement facility in myIR or by sending us a web message requesting an instalment arrangement.
If your request for an instalment arrangement is granted, you’ll receive a letter confirming the instalment arrangement and penalties will no longer be charged. You may qualify for remission of interest and penalties if your business is affected by COVID-19. If you cannot keep to the agreed arrangement, please contact us as soon as possible, as we may be able to review it. If you stop making payments without telling us why you missed them, penalties and interest will go back on from the original due date.
You need to pay off your instalment arrangement by 8 April 2024 to gain full relief from penalties and interest when you've been affected by COVID-19. Interest will apply to any outstanding amount from the original due date if the arrangement is not paid by 8 April 2024.
Information we may need from you
When we do ask for more details, we'll be looking for your plan to keep your business going. We're likely to request:
- at least 3-months banks statements and credit card statements
- any management accounting information
- a list of aged creditors and debtors.