Managing your tax during COVID-19
Here in New Zealand, it’s important to acknowledge that we have been luckier than other nations in terms of our COVID-19 situation. However, the situation is still present here and is still affecting people and businesses.
IRD have said that if you are unable to pay personal or business taxes on time due to any impact of COVID-19, then you should get in contact with them as soon as possible. They can assist in a number of ways such as arranging payment in instalments, remitting any penalties or interest and more. They also encourage you to file your tax as usual, as best you can. This will help the Government continue to respond to what’s happening in our New Zealand economy.
The following are some important things to know about managing your tax during COVID-19, all sourced information from IRD New Zealand.
Covid-19 Increase in tax write-off threshold
https://www.ird.govt.nz/covid-19/manage-my-tax/covid-19-increase-in-tax-write-off-threshold
The threshold for writing off tax to pay has increased for the 2021 tax year for those who utilize the automatic tax calculation procedure.
Covid-19 Filing and paying
https://www.ird.govt.nz/covid-19/manage-my-tax/filing-and-paying
Even during this difficult time, it’s important that you continue filing your returns. This information is important to help the Government as well as help making correct payments to people.
Covid-19 Penalties and interest
https://www.ird.govt.nz/covid-19/manage-my-tax/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 its understood that arrangements might need to be made in respect of a business’ ability to pay tax and a number of support options are available.
Covid-19 Statutory declarations
https://www.ird.govt.nz/covid-19/manage-my-tax/statutory-declarations
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.
Covid-19 Greater flexibility for statutory tax deadlies
https://www.ird.govt.nz/covid-19/manage-my-tax/greater-flexibility-for-statutory-tax-deadlines
IRD are able to adjust timeframes or any procedural requirements for taxpayers who are impacted by COVID-19.
Covid-19 March 2020 issues
https://www.ird.govt.nz/covid-19/manage-my-tax/31-march-2020-issues
March 2020 held the COVID-19 lockdown, which may have put a spanner in the works in terms of submitting anything that was due during this time period. A number of matters have been addressed by IRD in the link above.
Information source: https://www.ird.govt.nz/covid-19/manage-my-tax
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