HOW TO QUALIFY FOR IRD Waiver of Interest and Penalties
1. Only applies to tax that is due on or after 14 February 2020.
Pre existing tax debt is not covered by this dispensation.
2. The ability to pay the tax must have been significantly affected by Covid 19.
Sales or income must have been significantly reduced as a consequence of Covid 19 resulting in the current inability to pay the tax. Presumably qualification for a subsidy would be indicative of a situation in which relief might be given.
IRD will generally regard continued filing of returns, especially GST returns, as giving them evidence of the qualification for remission of interest and penalties, but reserve the right to request detailed information if they feel this is warranted (as is the case for the subsidy).
3. IRD must be contacted ASAP* to set up an arrangement.
IRD want to be informed as soon as possible of the taxpayer's circumstances. They regard setting up a payment plan as evidence of being informed.
The payment plan will still record the interest and penalties as being due but if the payment plan is adhered to the interest and penalties will be written off.
If you cannot make the payments agreed under the initial plan you must renegotiate a follow up plan to continue to be eligible for a write off.