The impact of COVID-19 has affected numerous people’s ability to make applications and elections on time. Following from our last tax blog about the extension for writing off bad debts, the Commissioner of Inland Revenue issued several Determinations providing variations to the time frames required for elections with the due dates during the lockdown period.
The following are some interesting Determinations that might apply to you:
COV 20/01 – Look-through company election
- For new companies electing into the LTC regime with effect from the 2019 income year, the deadline to file an election has been extended to 30 June 2020
COV 20/03 – Change in GST taxable period application
- This extension allows the taxpayer to elect to change from a 6-month taxable period to a 1-month taxable period before 30 June 2020.
COV 20/05 – Tax Pooling Purchase
- This variation extends the time to make a purchase of 2019 income tax from the tax pool by 365 days so long as the contract was in place before 21 July 2020. There are some additional requirements to this extension. Practically, these requirements make this variation unlikely to be used as interest and penalty write-offs should be considered first.
COV 20/06 – Spreading of timber income election
- The variation applies to a person who wishes to allocate timber income derived in an income year ending on a date between 25 March – 30 June 2019 to any 1 or more of the previous three income. The due date of this application has been extended to 31 July 2020.
So, if you wish to elect or apply for any of the above, make sure to get in contact with us