In addition to the tax loss carried back scheme, the Government has introduced a range of tax changes. Two of the changes recently announced are the extension of time for deposits to Income Equalization and the change in use of money interest.
Extension of Time for Deposits to Income Equalization Scheme
The Commissioner has recently announced the extension of time for deposits to the Income Equalization for farmers, fishers and growers who have been affected by the following events:
- The Southland/Otago floods of late 2019
- Mycoplasma Bovis (unexpected taxable income from the sale of culled stock not replaced in the same year)
- Drought in the entire North Island, Tasman, Marlborough, Kaikoura, North Canterbury and the Chatham Islands.
The Commissioner has extended the date on which to make a deposit to the income equalization account for the 2019 income year to 30 June 2020.
Use of Money Interest
Another recent announcement is changes to the use of money interest rates for overpayments and underpayments of tax. The rates were changed from 4 May 2020 and came into force on 7 May 2020. The changes are as follow:
- Use of money interest for underpayments of tax was reduced from 8.35% to 7% per annum, and
- The rate for overpayments of tax was decrease from 0.81% to 0% per annum.