If you are unable to pay your tax on time because you have been adversely affected by COVID-19, you can ask us to remove penalties and interest.
We can remit interest for tax payments that were due on or after 14 February 2020 up until 24 March 2022. We can remit interest on provisional tax for the 2021 tax year.
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. We'll work with you based on what you know and can access now. As you get access to more information about your financial position, we'll carry on working with you.
Instalment arrangements for tax owing
In myIR, as part of applying for a payment plan, we ask if you're affected by COVID-19. When you answer yes, no more interest and penalties will go on your account. If you want to send us financial information, send us a message in myIR, and we’ll get back to you.
You’ll receive a letter confirming the instalment arrangement. 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.
Information we may need from you
When we do ask for more detail, we'll be looking for your plan to keep your business going. We know you might not be able to get everything we ask for if parts or all of New Zealand are in COVID-19 lockdown. We will not ask for the information unless we need it, but it should be available if we ask to see it.
- at least 3-months banks statements and credit card statements
- any management accounting information
- a list of aged creditors and debtors.
Even if you cannot make payments, carry on filing GST and other returns. These returns have a lot of useful information in them.