The extreme weather in those areas was classified as an “emergency event” and therefore Inland Revenue has been able to implement tax relief. Key measures that have been switched on are: 

• Remittance of penalties and interest where late payment and filing are related to the weather events.
• The ability to make late deposits and early refunds under the income equalisation scheme (applicable to the agricultural sector).

The remittance of penalties and interest is particularly helpful for any businesses with GST returns that were due on 28 January, or had provisional tax due on 28 January.

If your business is in one of the following regions, you may be eligible for relief:

• Northland
• Tairāwhiti (East Coast)
• Thames-Coromandel
• Western Bay of Plenty
• Hauraki

While the events were declared emergencies, the designation is yet to be subject to an Order in Council, so longer-term relief measures such as depreciation rollover are not yet available.

Legislation enacted last year means a smoother and easier response to such events and ensures that businesses and other taxpayers can focus on recovery from natural disasters without needing to be stressed about making tax payments on time.

If your business has been impacted by the weather events of the last couple of weeks and you wish to discuss your options for relief, please contact your local Baker Tilly Staples Rodway tax advisor.