On 15 February 2023, Minister of Agriculture, Damien O’Connor, and Minister for Rural Communities, Kieran McAnulty, declared a large-scale adverse event for the Northland, Auckland, Waikato, Bay of Plenty, Gisborne and Hawke’s Bay regions and Tararua district because of Cyclone Gabrielle.
On 20 February 2023 Cyclone Gabrielle was declared to be an emergency event for the purposes of use of money interest remission (UOMI) rules. This declaration allows Inland Revenue to remit interest charges on late payments of tax. The declaration identified the Northland, Auckland, Waikato, Bay of Plenty, Gisborne and Hawke’s Bay regions and Tararua district as affected areas.
There is also localised flooding and damage across other regions and districts which is affecting customers’ ability to comply with their tax obligations, including filing and paying on time.
If you or your clients have been affected, you do not need to call us right now – focus on the clean-up – but when you are able to please contact us in myIR using the word ‘cyclone’ or call us on our disaster line 0800 473 566. Using these communication methods allows us to prioritise our support to affected customers.
We have a range of relief available to customers affected by adverse events.
Tax relief for emergency events
The following is an outline of the additional support and relief we have made available to customers affected by Cyclone Gabrielle, it is also in addition to relief made available for earlier weather events.
The declaration of Cyclone Gabrielle as an emergency event allows affected customers remission of use of money interest (UOMI) on late payments of tax until 30 June 2023. Remission applies to taxpayers who have been adversely affected by the event.
Tax Administration (February Cyclone Event) Order 2023
31 March filing date
There is no extension of the 31 March 2023 due date for 2022 income tax returns, however customers affected by the recent adverse weather can apply for remission of any late filing penalties after they have filed their return.
Tax agents can use our deferral status (D-status) tool to delay the automated policing of their overdue returns because of exceptional circumstances. D-status also removes the affected clients from the agent’s filing percentage.
Cost of Living payments
There is no extension of the 31 March 2023 requirement for a customer to file their 2022 individual income tax return - IR3 in order to be entitled to the Cost of Living payment.
Donated trading stock
The donated trading stock concession has been extended from 31 March 2023 to 31 March 2024. The temporary relief ensures that donations of trading stock to approved donee organisations and public authorities will qualify for an income tax deduction. Disposals of trading stock below market value to other non-associated organisations will benefit from relief from the anti-avoidance rule, but will only qualify for an income tax deduction if they can show they have a business purpose for making the disposal.
Tax relief for donations of trading stock
Donations and donee organisations
We understand that people want to help out their fellow New Zealanders affected by Cyclone Gabrielle. If you’re supporting by making donations, you may be entitled to a tax credit if you donate to an approved donee organisation.
Find out more, including whether the organisation you’re giving to is an approved donee organisation.
To help affected farmers and growers we are allowing late deposits for the 2022 year and early withdrawals from the income equalisation scheme. We have made a 'class of case' determination for the affected regions that qualify for an early refund however affected customers outside of these regions can still make a case-by-case deposit or refund application.
The rain and flooding will affect farmers and growers' income for the 2023 income year. Late deposits for the 2022 year can be made until 30 June 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.
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 refer to
Standard Practice Statement 19/03 Income equalisation deposits and refunds