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R&D tax credit Covid-19 variations

By April 27, 2021 No Comments

R&D tax credit Covid-19 variations

IR has released COV 21/01 – variation to sections 33E and 68CC(3) of the Tax Administration Act 1994 (TAA), which has an effective date of 21st April 2021 to 30th September 2021.

The variation relates to the filing of both a ‘criteria and methodologies notice’ in relation to the R&D tax credit for the 2020-2021 income tax year under section 68CC(3) of the TAA (usually due 7th May 2021), and the filing of a supplementary return for the 2019-2020 tax year under s 33E of the TAA (usually due 30th April 2021).

For a ‘criteria and methodologies notice’, the due date is extended to the 7th day of the fifth month after the end of the income year for a person with a standard or late balance date, or 7 August 2021 for a person with an early balance date, but in no case beyond 30 September 2021.

For a supplementary return for the 2019-2020 tax year, the date by which a supplementary return must be filed is amended to be the day that is 90 days after:

(a) the due date on which they are required to file a return of income for the tax year under section 37; or,

(b) the due date on which they would be required to file a return under section 37 if they   had assessable income.

Note that the variation should only be applied by those whose ability to otherwise file on time, has been materially delayed or disrupted by the Covid-19 outbreak and its effects (so be ready for potential push-back from IR in this respect).

This article from the ‘A Week in Review’ newsletter was originally published Monday 27th April 2021. If you have any questions or would like a second opinion on any national or international tax issues, please contact me richard@gilshep.co.nz. 

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