183ABABRemission of interest for taxpayers affected by COVID-19: general rules

1. This section applies for a taxpayer if—

2. the taxpayer’s ability to make a payment required by a tax law on or before the due date for the payment is significantly adversely affected by COVID-19; and
3. the due date for the payment is no earlier than 14 February 2020; and
4. the taxpayer is charged with interest under Part 7 for failing to make the payment by the due date; and
5. the requirement for the payment does not arise from an election under section IZ 8 of the Income Tax Act 2007 by the taxpayer, or by a company in the same group of companies as the taxpayer.

6. The taxpayer may ask the Commissioner to remit interest accrued after 14 February 2020 (the interest) on the payment.

7. The Commissioner may remit the interest if—

8. the Commissioner is satisfied that the taxpayer—
   1. asked for the relief as soon as practicable; and
   2. made the payment as soon as practicable; and
9. no more than 4 years and 15 days have passed since the date on which this section comes into force.

10. The time limit imposed by subsection (3)(b) may be extended by Order in Council—

11. made on the recommendation of the Minister of Revenue; and
12. made before, or no more than 6 months after, the time limit (the previous time limit) applying immediately before the Order in Council comes into force; and
13. extending the time limit by no more than 36 months from the previous time limit for—
    1. all persons affected by the previous time limit; or
    2. a class or classes of persons affected by the previous time limit and described in the Order in Council.

14. An Order in Council (the order) made under subsection (4) or this subsection—

15. expires, if not renewed under paragraph (b), after—
    1. the period given in the order, if such a period is given; or
    2. if no such period is given, 6 months after the order comes into force:
16. may be renewed or replaced from time to time by an Order in Council made—
    1. on the recommendation of the Minister of Revenue; and
    2. before the date on which the order would otherwise expire.

17. The Minister of Revenue may recommend the making of an Order in Council under subsection (4) or (5) to extend the time limit only if satisfied that the ability of taxpayers to pay tax on time is likely to continue, beyond the expiry of the existing time limit, to be significantly adversely affected by COVID-19.

18. An Order in Council under subsection (4) or (5) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).