On 15 August 2022 Cabinet declared the series of adverse weather fronts that crossed New Zealand between 11 July and 31 July 2022 as an emergency event for the purposes of use of money interest remission (UOMI). The declaration identified Northland, Canterbury and Otago regions and Gisborne and Wairoa districts as the affected areas.
This adverse weather affecting customers’ ability to comply with their tax obligations, including filing and paying on time.
The floods will affect farmers and grower’s income for the 2023 income year. Late deposits for the 2022 year can be made until 31 May 2023.
Early refunds of deposits will be allowed. Normally income equalisation deposits are not available for refund until 12 months after the deposit is made. However, we do have discretion to allow early refunds, particularly in the case of a medium or large-scale adverse event or when the person is suffering serious hardship.
We also have the ability to determine a 'class of case' that qualify for an early refund.
All applications for an early refund must be in writing and will take approximately 20 days to process. It should be remembered that the refund will be income in the year that the application is made unless it is elected to treat the refund as income in the prior income year where the application for refund is made in the specified period.
For more information on income equalisation and deposits please refer to our Standard Practice Statement 19/03 Income equalisation deposits and refunds.
For more information, please contact us on our emergency helpline 0800 473 566.
New Zealand legislation
Income Tax Act 2007:
- Section EH 4(4)
- Section EH 15(3)