To assist customers, the Commissioner already has a number of financial relief and remission provisions of the Tax Administration Act 1994 (TAA).  The Government has also introduced a new section 183ABAB into the TAA 1994 giving the Commissioner the ability to remit use of money interest (UOMI) charged if the taxpayer’s ability to pay tax on time has been significantly adversely affected by the COVID-19 outbreak. 

This new provision would include both when a taxpayer is physically unable to make a tax payment on time and also when a taxpayer is financially unable to make a tax payment on time because of the economic effects of the COVID-19 outbreak. That relief is available once the core tax has been paid in full.  This discretion applies to tax payments due on or after 14 February 2020.  The Commissioner’s ability to remit interest under s 183ABAB will apply until 25 March 2022. 

To be eligible for remittance of penalties and Use Of Money Interest, the taxpayer must meet the following criteria.

• The taxpayer has tax that is due on or after 14 February 2020
• The taxpayer’s ability to pay by the due date, either physically or financially, has been significantly affected by COVID-19
• The taxpayer will be expected to contact the Commissioner as soon as practicable to request relief and will also be required to pay the outstanding tax as soon as practicable