Government measures in key jurisdictions 3rd edition final - Flipbook - Page 90
New Zealand
Litigation
Are the courts
operating?
New Zealand is now at COVID-19 Alert Level One, which means that the country is operating as normal
except that borders are closed. Even while New Zealand was at COVID-19 Alert Level Four, the highest
level in the alert system, the
.
During the COVID-19 Alert Level Four lockdown courts changed their practices, to allow greater use of
remote hearings, and to permit documents to be filed electronically. During this time hearings were held
only for urgent proceedings, as it took time for the necessary technology to be implemented.
Almost all courts are now operating as usual. The only hearings not being held are criminal trials heard by
a jury, and these will recommence in the next few weeks.
Tax
Has any new
legislation been
introduced in light of
Covid-19?
The Government introduced a range of tax measures to provide relief to individuals and businesses.
These include:
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Restoring building depreciation. This supports businesses and encourages investment in new and
existing building by reinstating depreciation deductions for non-residential buildings. It provides
business support by improving cashflow in the near-term, and assists with the broader economic
recovery by stimulating business investment in new and existing buildings.
Increasing the provisional tax threshold from $2,500 to $5,000. This relieves the compliance
burden for small businesses as well as freeing up cashflow. It allows people to delay paying their
provisional tax, as they can wait until 7 February in the year following the year they file their return
before they have to pay, instead of having to pay in instalments throughout the year. It allows
them to retain cash for longer, and will benefit an estimated 95,000 people.
Allowing immediate low-value asset write offs. To encourage spending, the change will temporarily
increase the threshold of the value of assets which can be deducted in the year the asset was
purchased. The threshold will increase from $500 to $5,000 for assets purchased in the 12 months
from 17 March 2020 (reducing to $1,000 from 17 March 2021.
Bringing forward broader research and development (R&D) refundability. The proposed
amendment would bring planned refundability measures forward by one year, to the 2019–20
income year. This would help relieve cashflow problems, encourage businesses to retain their R&D
staff, and (where possible) support these firms to continue their R&D in the current environment.
Allowing use of money interest to be waived. This allows Inland Revenue to cancel interest on a
late tax payment if the taxpayer’s ability to make a payment due on or after 14 February 2020 was
significantly adversely affected by the COVID-19 outbreak.
Allowing greater information sharing. This would allow Inland Revenue to share information with a
wider group of government agencies to assist the efficient and effective delivery of the
Government’s COVID-19 response.
Allowing more access to the in-work tax credit. This would ensure that working families whose
working hours are reduced as a result of COVID-19 would not lose their eligibility for the tax credit.
Around 19,000 families will benefit.
Introducing a tax loss carry-back regime to provide cash flow quickly to businesses, by allowing
losses to be carried back one year.
Allowing Inland Revenue to change due dates, timeframes or other procedural requirements for tax
returns for taxpayers affected by COVID-19.
Ensuring the treatment of benefits and pensions paid to New Zealanders stranded overseas is
consistent with the treatment of equivalent payments in New Zealand.
For the 2019/20 income tax year, tax payable up to $200 will be written off. The usual threshold for
writing off tax is $50. This will reduce tax bills for approximately 149,000 taxpayers.
Government measures in key jurisdictions