Tax measures in response to floodingSocial Development Revenue
Inland Revenue will waive use of money interest on late tax payments when flooding has prevented people from paying on time, say Lead Minister for Edgecumbe Anne Tolley and Revenue Minister Judith Collins.
“In the aftermath of the Edgecumbe and Bay of Plenty floods businesses in affected areas have enough to deal with without having to worry about their tax obligations at the same time,” Mrs Tolley says.
“Inland Revenue will waive use of money interest on late tax payments and will cancel late filing and late payment penalties for taxpayers who are unable to pay their tax by the due date because of the recent flooding,” Ms Collins says.
The terminal tax date for the 2016 income year for taxpayers with tax agents was 7 April, and 20 April is a due date for employers.
Inland Revenue has also announced discretions on income equalisation for farmers who are significantly affected by the flooding.
“This will allow people to make late deposits from the 2016 income tax year and to apply for early refunds. This means farmers and fishers can average their taxable income over several years more easily,” Ms Collins says.