183ABAB Remission of interest for taxpayers affected by COVID-19: general rules

(1)

This section applies for a taxpayer if—

(a)

the taxpayer’s ability to make a payment required by a tax law on or before the due date for the payment is significantly adversely affected by COVID-19; and

(b)

the due date for the payment is no earlier than 14 February 2020; and

(c)

the taxpayer is charged with interest under Part 7 for failing to make the payment by the due date; and

(d)

the requirement for the payment does not arise from an election under section IZ 8 of the Income Tax Act 2007 by the taxpayer, or by a company in the same group of companies as the taxpayer.

(2)

The taxpayer may ask the Commissioner to remit interest accrued after 14 February 2020 (the interest) on the payment.

(3)

The Commissioner may remit the interest if—

(a)

the Commissioner is satisfied that the taxpayer—

(i)

asked for the relief as soon as practicable; and

(ii)

made the payment as soon as practicable; and

(b)

no more than 24 months have passed since the date on which this section comes into force.

(4)

The time limit imposed by subsection (3)(b) may be extended by Order in Council made—

(a)

on the recommendation of the Minister of Revenue; and

(b)

within 24 months of the date on which this section comes into force.

(5)

An Order in Council (the order) made under subsection (4) or this subsection—

(a)

expires, if not renewed under paragraph (b), after—

(i)

the period given in the order, if such a period is given; or

(ii)

if no such period is given, 6 months after the order comes into force:

(b)

may be renewed or replaced from time to time by an Order in Council made—

(i)

on the recommendation of the Minister of Revenue; and

(ii)

before the date on which the order would otherwise expire.

(6)

The Minister of Revenue may recommend the making of an Order in Council under subsection (4) or (5) to extend the time limit only if satisfied that the ability of taxpayers to pay tax on time is likely to continue, beyond the expiry of the existing time limit, to be significantly adversely affected by COVID-19.

(7)

An Order in Council made under subsection (4) or (5) is a legislative instrument and a disallowable instrument for the purposes of the Legislation Act 2012, and must be presented to the House of Representatives under section 41 of that Act.

Section 183ABAB: inserted, on 25 March 2020, by section 33 of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).

Section 183ABAB heading: replaced, on 7 August 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act (No 2) 2020 (2020 No 58).

Section 183ABAB(1)(c): amended (with effect on 15 April 2020), on 30 April 2020, by section 22(1)(a) (and see section 22(2) for application) of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).

Section 183ABAB(1)(d): inserted (with effect on 15 April 2020), on 30 April 2020, by section 22(1)(b) (and see section 22(2) for application) of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).