This note is not part of the order, but is intended to indicate its general effect.
This order (the amendment order), which comes into force on the day after its notification in the Gazette, amends the Tax Administration (Emergency Event—Canterbury Earthquake) Order 2010 (the principal order). The effect of the amendment is to renew the principal order and change its expiry date to 30 September 2012.
The principal order applies to taxpayers who are physically prevented by the Canterbury earthquake from making a payment required by tax law. For example, this includes individuals and companies that are prevented from making payments to the Commissioner of Inland Revenue (the Commissioner) because staff or tax agents are unable to access the building in which their records are stored or because the records have been destroyed.
Taxpayers to whom the order applies may ask the Commissioner to remit interest charged under Part 7 of the Tax Administration Act 1994 (the 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; and
the taxpayer asked for the relief as soon as practicable; and
the taxpayer made the payment as soon as practicable.
The principal order would, but for its renewal by this notice, expire on 30 September 2011. It is necessary to renew the notice and extend the expiry date to 30 September 2012 because—
interest on provisional tax payments is only calculated after the return for the relevant period has been submitted to the Inland Revenue Department and assessed; and
some returns for the income year ending on 31 March 2011 are not due until 31 March 2012 and may take some time to process.
The amendment will take effect after the date on which the principal order would otherwise expire. However, section 183ABA(5)(c) of the Act authorises this retrospective renewal of the principal order.