Due to the impacts of COVID-19 Inland Revenue have extended the date by which you need to inform them of your election to use the GST ratio method for calculating your provisional tax payments.
Section RC 15 of the Income Tax Act 2007 requires that if you want to use the GST ratio method, you must meet all the requirements and elect to do this before the start of your income year. If a person has a 31 March balance date, and they wish to use a GST ratio for the 2021 year, they were required to inform IR of their election on or before 31 March 2020.
In order to mitigate the unintended impact of COVID-19 on affected people, additional time is being given to anyone who was unable to inform Inland Revenue of their election within the timeframe due to COVID-19. If you are affected you now have until 19 August 2020, or the day before the start of your 2021 income year, whichever is the later, to make the election.
Additionally, you will be given 10 working days to make the provisional tax payment once we have notified you of your GST ratio. If you make payment within that time frame, any penalties and interest will be remitted.
SOURCE: IRD
