COVID-19 Tax Assistance
Tax time is just around the corner and this last year hasn’t exactly been an easy one for most NZ businesses. What with lockdowns, supply chain issues, and inflation, it’s nice to know that the Government understands the effect that COVID-19 has had on small businesses and is providing tax relief and income assistance to those that need it most. It is recommended that you file as usual and on time. The Government uses this information to respond to what is happening with the economy.
The following information and links, all direct from the IRD NZ website, offer important things to know about managing your tax during COVID-19.
The Government understands that during this difficult time some customers might have difficulty paying all their taxes. However, it is important that you still file your returns on time. The information in the return gives the Government a complete picture of a customer’s financial position when considering the different relief options.
Difficulty in paying tax
If you’re unable to pay your taxes on time due to the pandemic impact there are a couple of options available; breaking down your payments by setting up an installment arrangement, or you can apply for a write-off due to serious hardship.
Penalties and Interest
IRD has recognised that there will be an increase in financial pressure in terms of paying taxes in full and on time, so it’s understood that arrangements might need to be made in respect of a business’s ability to pay tax.
Due to the pandemic, declarations can now be made without any witnessing being done in person. An alternative can be sending in audio-visual or audio files.
Greater flexibility for statutory tax deadlines
Inland Revenue has been given the flexibility to adjust some timeframes or procedural requirements for taxpayers who have been impacted by COVID-19.
Email us today to have a chat with one of our team to discuss how we can help you with these matters.
Information source: https://www.ird.govt.nz/covid-19/manage-my-tax