Announcements
PUBLISHED 15 September 2010

Government agrees to waive use of money interest

The Government has agreed to allow use of money interest on late tax payments to be waived for Canterbury earthquake victims. See the Minister’s media release.


Hon Peter Dunne
Minister of Revenue

Dunne: IRD can waive quake victims' late tax interest

Inland Revenue has been given the power to waive interest on late tax payments for Canterbury earthquake victims, Revenue Minister Peter Dunne announced today.

"Tax affairs may be the last thing on quake victims' minds at a time like this, but at least we can make it one less thing for them to worry about," Mr Dunne said.

He said Cabinet had yesterday agreed to an Order in Council allowing 'use of money' interest payable on late payment of tax to be waived during emergencies.

Use of money interest is routinely charged on late tax payments, but he said the change was essentially about acknowledging that many people couldn't meet their tax obligations for reasons beyond their control.

"For instance they may have been unable to get into their buildings or records have been destroyed, or it might be that personal circumstances prevented them from paying on time" Mr Dunne said.

The interest waiver will apply to all interest charged by Inland Revenue to those who were prevented from paying on time.

He said that the department's Christchurch office was back in operation and that people could contact Inland Revenue if they had any concerns.

An Inland Revenue Disaster Response line has also been set up on 0800 473 566.

Further information for people affected by the earthquake is available on Inland Revenue's website www.ird.govt.nz.

Ends

Mark Stewart | Press Secretary | Office of Hon Peter Dunne
Cell +64 21 243 6985