Emergency event declared

I expect that post-Friday’s unprecedented event, we will shortly see a similar declaration to the present, which relates to the January cyclone (I wouldn’t be surprised if it had already been forgotten about). In this regard, the Tax Administration (January Cyclone Event) Order 2023 (SL 2023/1) was notified in the New Zealand Gazette on 26 January 2023 and comes into force on that date.

The Order declares the January Cyclone Event to be an emergency event for the purpose of section 183ABA of the Tax Administration Act 1994. The Act applies to taxpayers who are significantly adversely affected in respect of making a payment required by tax law by the due date.

If this is you or any of your clients, then you may request Inland Revenue (IR) to remit interest charged under Pt 7 of the TAA for failing to make payments by the due date. IR may then remit the interest if they are satisfied that:

• it is equitable that the interest be remitted;
• the taxpayer asked for the relief as soon as practicable; and,
• made the payment as soon as practicable.

The Order expires and is revoked on 31st March 2023.

This article from the 'A Week in Review' newsletter was originally published Tuesday 31st January 2023. If you have any questions or would like a second opinion on any national or international tax issues, please contact me [email protected].?

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