Tax relief for businesses hit by severe July weather
The Government has made an Order in Council declaring the series of adverse weather fronts that crossed New Zealand between 11 July and 31 July 2022 to be an emergency event and allows Inland Revenue to waive interest charges on late payments of tax for business affected by that emergency event. The Tax Administration (July Adverse Weather Event) Order 2022 allows Inland Revenue to waive use of money interest for late payment of taxes.
The emergency event applies to people whose businesses in the districts of Canterbury, Gisborne, Northland, Otago, and Wairoa have been affected by floods, damaging high winds, and disruption to infrastructure.
The Order is now in effect and will expire on 30 September 2022.
Businesses affected by the floods are urged to contact their tax agent if they would like to take advantage of the interest remission measure. Taxpayers will be able to apply to have late payment interest waived once they have filed their returns and paid due taxes.
Different rules apply in cases of financial hardship.
Provisional Tax DUE SOON
Provisional tax is due on August 28, 2022.
Provisional tax helps you manage your income tax. You pay it in instalments during the year instead of a lump sum at the end of the year. You'll have to pay provisional tax if you had to pay more than $5,000 tax at the end of the year from your last return.
It's payable the following year after your tax return. For example, if your residual income tax from your 2022 return is more than $5,000, then you'll need to pay provisional tax during the 2023 tax year.
Provisional taxpayers often earn:
There are some situations where you may need to pay provisional tax on your reportable income.
Reportable income is income information that Inland Revenue receives regularly from a third party (e.g. an employer, a bank, etc) for an individual and a tax year.
These can be due to:
Please budget for your August 28, 2022 Provisional tax.
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