Businesses have a few extra months to file their tax returns in March
Move is intended to help companies impacted by the Covid.
The Inland Revenue will give businesses a few extra months to file tax returns which are normally due at the end of March, due to the Omicron wave.
National IR Compliance Officer Corey Sinclair said the decision was communicated to tax officials on Tuesday.
It followed calls from industry body Chartered Accountants Australia and New Zealand (Caanz) and others for leeway for businesses.
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Sinclair said IR is aware that many tax officials and their clients may struggle to complete tax returns that were due by the end of the month.
“It remains important to provide tax returns as soon as possible. However, we will delay requesting outstanding 2021 tax returns until May 31,” he said.
Reminder letters would be sent on or around June 13, and if a return was not filed within 30 days of that date, businesses would face a late-filing penalty, he said. .
The advice follows a decision communicated by the Cabinet last week to extend IR’s ability to be flexible about tax payment dates and terms.
“We are doing what we can to help businesses facing cash pressures,” IR said.
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Caanz New Zealand tax executive John Cuthbertson said he was pleased with the decision.
“Omicron cases are increasing and companies are under pressure.
“Delays in information and staffing shortages of tax officials due to ‘close contacts’ and illness are affecting businesses’ ability to file tax returns,” he said.
But he said Caanz is still waiting to see if there will be similar concessions for certain related filings, such as finalized loss offsets, trust distributions and grant payments.
Caanz had also requested an extension of the “tax pooling” deadline and the tax payment date.
funding, he said.
“If tax filings are delayed, businesses may have difficulty finalizing their year-end tax return
position, let alone make payment.