Tax Talk | Interest Deductibility Rules Announced
More than six months after the government announced interest deductibility limitations for residential...
Time to read: 2 mins
A third round of the resurgence support payment has opened on 8 October. The criteria for this payment remain unchanged compared with the first and second rounds and is open to any business in New Zealand that meets the criteria. For businesses who have not yet applied for the first and/or second rounds of the resurgence support payment, these remain open until a month after New Zealand goes to Level 1.
Applications for the current round of the wage subsidy remain open until 11:59pm on 14 October 2021, with applications for the next round of the wage subsidy expecting to open at 9am on 15 October 2021.
For those who are yet to make wage subsidy applications in the current round, the revenue decline criteria can also take into account revenue declines caused by Hamilton City and much of the Waikato District going into Level 3 restrictions on 4 October, as well as revenue declines caused by the Waitomo, Ōtorohanga and Waipā Districts going into Level 3 restrictions on 8 October.
Over the last few years, Inland Revenue has been busy modernising their IT system with tax types gradually being shifted from their old IT system to their new IT system. The last major release is due to take place from 21 October to 28 October with the result that Inland Revenue’s systems, call centre and myIR will not be available during this period.
As a result, provisional tax and GST payments due on 28 October will instead have a due date of 4 November. This delay also applies to filing of GST returns, which will also be due for filing by 4 November.
For businesses who are suffering declines in cashflow as a result of Alert Level changes and are finding it difficult to make payments of tax on time, Inland Revenue have the ability to remit penalties and use of money interest if the reason for the late payment of tax was due to Alert Level changes.
If you have any queries regarding the resurgence support payment, the wage subsidy or tax relief available, please contact your Baker Tilly Staples Rodway advisor.