Cyclone Gabrielle Declared an Emergency Event

Cyclone Gabrielle has been declared to be an emergency event for the purposes of Use of Money Interest Remission (UOMI) rules. This declaration allows Inland Revenue to remit interest charges on late payments of tax.

The Tax Administration (February Cyclone Event) Order 2023 (SL 2023/10) was notified in the New Zealand Gazette on 20 February 2023 and came into force on that date. The Order declares the February Cyclone Event to be an emergency event for the purpose of s 183ABA of the Tax Administration Act 1994.

The February Cyclone Event means all or any of the flooding or other damage that occurred as a result of Cyclone Gabrielle which crossed the North Island of New Zealand during the period starting on 12 February 2023 and ending on 16 February 2023. The affected areas are Northland, Auckland, Waikato, Bay of Plenty, Gisborne and Hawke’s Bay regions and Tararua district.

The Order applies to taxpayers who are significantly adversely affected by the February Cyclone Event in respect of making a payment required by tax law by due date.

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 by a due date. The Commissioner may then remit the interest if 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 and is revoked on the close of 30 June 2023.

Source: Tax Administration (February Cyclone Event) Order 2023, 20 February 2023.