Earthquake legislative instruments available
The following legislative instruments relating to the Hurunui/Kaikoura earthquakes were notified in the New Zealand Gazette on 21 November 2016:
Goods and Services Tax (Grants and Subsidies) Amendment Order 2016 (2016/269)
This Order, which comes into force on 21 November 2016, amends the Goods and Services Tax (Grants and Subsidies) Order 1992. The effect of the amendment is to declare earthquake support subsidy payments made on or before 28 February 2017 on behalf of the Crown in relation to the earthquakes that occurred on 14 November 2016 in Hurunui and Kaikoura or any of their aftershocks are not to be taxable grants or subsidies for the purposes of s 5(6D) of the Goods and Services Tax Act 1985. This means no GST is payable in relation to the payments.
Tax Administration (Hurunui/Kaikoura Earthquakes) Order 2016 (2016/270)
This Order, which comes into force on 21 November 2016, declares the Hurunui/Kaikoura earthquakes to be an emergency event for the purpose of s 183ABA of the Tax Administration Act 1994.
The Order applies to taxpayers that are physically prevented by the Hurunui/Kaikoura earthquakes from making a payment required by tax law by the due date. For example, this includes individuals and companies that are prevented from making PAYE payments to the Commissioner because staff or tax agents are unable to access the relevant building or because the records have been destroyed.
The effect is that taxpayers may ask the Commissioner to remit interest charged under Pt 7 of the Tax Administration Act for failing to make payments on a due date. The Commissioner may then remit the interest if the Commissioner is satisfied that:
- it is equitable that the interest be remitted
- the taxpayer asked for the relief as soon as practicable, and
- the taxpayer made the payment as soon as practicable.
The Order expires on 31 January 2017.
Tax Administration (Information Sharing – Hurunui/Kaikoura Earthquakes) Order 2016 (2016/271)
This Order, which comes into force on 21 November 2016, is made under s 81BA(2) of the Tax Administration Act 1994.
The Order enables Inland Revenue to provide information to the Ministry of Social Development if the Ministry reasonably requires the information for the administration of earthquake support subsidy payments in relation to the earthquakes that occurred on 14 November 2016 in Hurunui and Kaikoura and their aftershocks.
The Order is revoked at the close of 28 February 2017.