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Tax Administration Act 1994

Commissioner and department - Functions and powers of Commissioner

7AA: Authorisation to make payments under small business cashflow loan scheme

You could also call this:

"Help for Small Businesses: Getting a Loan to Improve Cashflow"

Illustration for Tax Administration Act 1994

The Commissioner can give a loan to you under the small business cashflow scheme if you meet the eligibility requirements, apply for the loan, and agree to the loan contract. You must provide the required information and follow the terms of the loan contract. If you get a payment and do not meet the eligibility requirements, you must repay the amount immediately. The Commissioner can get information from the Ministry of Social Development about the wage subsidy scheme to help with the loan. A loan contract under this scheme is not a credit contract or a consumer credit contract for the purposes of the Credit Contracts and Consumer Finance Act 2003. The small business cashflow scheme is a loan scheme to help small-to-medium businesses affected by COVID-19. You can find more information about eligibility requirements in the Legislation Act 2019. The Commissioner will use the information provided to make decisions about the loan.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS345772.

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Part 2Commissioner and department
Functions and powers of Commissioner

7AAAuthorisation to make payments under small business cashflow loan scheme

  1. The Commissioner, on behalf of the Crown, may grant a loan under the small business cashflow scheme (the scheme) to a person who—

  2. meets the eligibility requirements for a loan under the scheme; and
    1. makes a loan application to the Commissioner; and
      1. enters into a loan contract with the Commissioner.

        1. Repealed

        2. The person in whose name the loan application is made—

        3. must provide the information to the Commissioner required by the loan contract; and
          1. is bound by the terms of the loan contract and must pay or repay all amounts payable by the person under the loan contract at the times and in the manner provided in the loan contract.

            1. If a person who receives a payment from the Commissioner does not meet the required eligibility requirements, the person, or an associated person who receives the benefit of the payment other than as adequate consideration for a supply of goods or services, must repay the total amount to the Commissioner immediately.

            2. For the purposes of this section, the chief executive of the Ministry of Social Development is authorised to provide the Commissioner with any information relating to the wage subsidy scheme administered by the Ministry.

            3. The Commissioner may use the information provided under subsection (4B) in connection with the exercise or performance of any of the Commissioner’s duties, powers, or functions under the Inland Revenue Acts.

            4. A loan contract under this section is not a credit contract or a consumer credit contract for the purposes of the Credit Contracts and Consumer Finance Act 2003.

            5. For the purposes of this section,—

              loan contract means a loan contract or agreement that—

              1. is provided by or on behalf of the Commissioner to a person in whose name a loan application has been made; and
                1. records the terms on which a loan under the small business cashflow scheme is, or will be, made

                  small business cashflow scheme means the Small Business Cashflow (Loan) Scheme established and administered by the Crown to provide loans to assist small-to-medium businesses in the circumstances arising from the continuing impact of COVID-19 related measures or circumstances

                    wage subsidy scheme means a subsidy scheme that is established as part of the Government’s COVID-19 response measures and which the Ministry administers on behalf of the Government.

                    1. Eligibility requirements under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                    Notes
                    • Section 7AA: inserted, on , by section 19 of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
                    • Section 7AA(2): repealed, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                    • Section 7AA(4): amended, on , by section 181 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                    • Section 7AA(4B): inserted (with effect on 30 April 2020), on , by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
                    • Section 7AA(4C): inserted (with effect on 30 April 2020), on , by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
                    • Section 7AA(6) small business cashflow scheme: replaced (with effect on 30 April 2020), on , by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
                    • Section 7AA(6) wage subsidy scheme: inserted (with effect on 30 April 2020), on , by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
                    • Section 7AA(7): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).