Income tax Dates
On 13 February 2022, Minister for Rural Communities, Damien O’Connor declared a medium-scale adverse event for the West Coast and top of the South Island regions. On 22 February 2022, this was extended to also include the Wairarapa and Taranaki regions, and Waitomo district.
There is also localised flooding and damage across other regions and districts.
At this time, the income equalisation scheme may help with cashflows.
Income equalisation scheme – deposits
The cyclone will affect farmers and grower’s income for the 2021 income year. Late deposits to the income equalisation scheme are allowed for the 2021 year and can be made until 30 April 2022.
Income equalisation scheme - refunds
Early refunds of deposits will be allowed. Normally income equalisation deposits are not available for refund until 12 months after the deposit is made. However, we do have discretion to allow early refunds, particularly in the case of a medium or large-scale adverse event or when the person is suffering serious hardship.
We also have the ability to determine a "class of case" that qualify for an early refund.
All applications for an early refund must be in writing and will take approximately 20 days to process. It should be remembered that the refund will be income in the year that the application is made unless it is elected to treat the refund as income in the prior income year where the application for refund is made in the specified period.
Standard Practice Statement 19/03 Income equalisation deposits and refunds
For more information, please contact us on our emergency helpline 0800 473 566.
New Zealand legislation
Income Tax Act 2007:
- Section EH 4(4)
- Section EH 15(3)