Covid 19 coronavirus: Businesses late to file GST get penalty break from IRD

Relief for businesses who are late filing their GST. Photo / 123RF

Businesses unable to pay their GST on time as a result of the Alert Level 4 lockdown won't be penalised, the Inland Revenue says.

The tax department has warned that it is currently receiving thousands of calls hourly.

"While we are in lockdown, if a business is unable to pay its taxes on time due to the impact of Covid-19, we understand," the IRD said in a statement.

"You don't need to contact us right now. Get in touch with us when you can via myIR, and we'll write-off any penalties and interest."

The IRD said the lower than normal volume of calls answered was due to call centre staff working from home and the closure of Inland Revenue's main Wellington building.

"As all Inland Revenue offices are closed during Alert Level 4 and customers are still in lockdown, there is no option for dropping returns in or making payments through Westpac branches which also remain closed," the IRD said.

"We know also that it might be challenging for people to continue filing returns at this time but it would help if they could continue to file, as we need the information to make correct payments to people, and to help the Government respond to what is happening in the economy."

The IRD is also supporting the Ministry of Social Development with wage subsidy verification and is responsible for the Resurgence Support Payment which are both taking up staff's time.

Auckland will be in Alert Level 4 lockdown until at least midnight on Tuesday next week, while the rest of New Zealand will be in lockdown until at least midnight this coming Friday as Delta virus cases continue to grow.