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Tax due dates:

7 April 2020 – 2019 terminal tax

7 May 2020 – 3rd instalment of 2020 provisional tax for 31 March balance dates. GST due for 2 or 6 months ended 31 March.

Government unfortunately has not extended any due dates,and has announced that the IRD will have the discretion to write off use of money interest where tax payments were unable to be made due to financial difficulties as a result of Covid-19.

According to the IRD:

Tax relief and income assistance is available to people affected by the downturn in business due to the COVID-19 (novel coronavirus). They have a range of ways to help depending on the circumstances.

To support businesses and individuals impacted by COVID-19, the Government has recently passed legislation to allow us to write-off use-of-money interest (UOMI) on payments due on or after 14 February 2020. This will be done at the IRD’s discretion and only apply to taxpayers whose ability to make a tax payment on time has been significantly adversely affected by the COVID-19 outbreak.

This covers all payments where UOMI is charged, whether they’re taxes (such as income tax or GST), or other payments (such as Working for Families).

Eligibility:

You may be eligible for a UOMI write-off if you or your business:

• has been significantly affected by COVID-19

• has had income or revenue reduced by at least 30% compared to the same month 12 months earlier

• have explored other options for financial support, such as talking with your bank about additional finance or re-negotiating other loans/overdrafts.

UOMI could be remitted for a maximum of two years past the date of enactment, but the actual length will depend on the circumstances of each business or individual.

The IRD will still expect all tax returns & GST to be filed.

The normal options for re-estimating provisional tax, setting up instalment arrangements, remitting late payment and filing penalties, and severe hardship debt write-offs are currently available. We encourage impacted businesses to take advantage of them.

We suggest that companies prepare projected cash flow for the next 12-month period based on their best estimates of how Covid 19 has impacted their revenue and expenses.

If we can help and assist clients in anyway please call us.

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