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16 November 2023
Erika Whittome
[FYI request #24499 email]
Dear Erika Whittome
Thank you for your request made under the Official Information Act 1982 (OIA), received
on  22 October  2023.  You  requested the following  regarding  the  COVID-19 Support
Payment (CSP):
1. Would you kindly share the process and policy documentation etc for approving
these payments which specifically cover the business' use of CVCs (Covid
Vaccination  Certificates)?  I request your process to assess businesses
eligibility for following both the CVC and for following the non-CVC rules. CVC
rules are in the Covid19 Public Health Response Protection Framework 2021
(2nd December) under Sub Part 3: you’ve got CVC rules and non CVC rules.
2. Would you also kindly define your criteria or policy document(s) what you state
as "all reasonably practical steps" in the following from your website: "They did
not include circumstances where businesses that were able to operate under
the Red setting of the COVID Protection Framework, but had chosen to close
temporarily without taking all reasonably practical steps to minimise their
revenue losses. "
Background
The CSP was administered under a process pursuant to which applicants:
• declared that they met the published CSP eligibility criteria (published on Inland
Revenue’s website in accordance with s 7AAB(3)(c) of the Tax Administration
Act 1994 (TAA)); and
• agreed to the terms and conditions (the CSP terms and conditions).
As part of the CSP terms and conditions, applicants also undertook to comply with their
declarations (including declarations about compliance with the CVC criteria and taking al
reasonable steps to minimise revenue decline), and to keep evidence, materials and
records of such compliance, which they could provide to Inland Revenue for audit purposes
(as required) (cl 4.1(d)(ii) of the CSP terms and conditions). Section 7AAB(4) of the TAA
also required applicants to provide such information as required by the Commissioner for
review purposes.
The CSP terms and conditions are attached  as  an  Appendix  to this response for your
reference.
Questions 1 and 2
Two  documents  are  within  scope  of  your  request.  The  policy  documents  regarding
approval  of  CSP  applications  are  provided  in  the  table  on  the  following  page,  which
include references to the CVC criteria (items 1 and 2) and taking all reasonable steps
to  minimise  revenue  decline  (item  1).  Therefore,  your  request  is  refused  in  part
under section 18(d) of the OIA, as  the information requested is publicly available.
www.ird.govt.nz
Ref: 24OIA1406

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Item  Date
Document description
Website address
1.  September
Cabinet Paper: CAB-22-SUB-
treasury.govt.nz/sites/defaul
2022
0030: Economic Supports
t/files/2022-09/c19-cab-22-
under Omicron
sub-0030-4663882.pdf
2.  September
Report IR2022/059 T2022/256:  treasury.govt.nz/sites/defaul
2022
Final design decisions of the
t/files/2022-09/c19-t256-
COVID-19 Support Payment
4616583.pdf
Inland Revenue did not provide any specific guidance to staff about assessing compliance
with CVC requirements beyond the following information  (in italics)  found on Inland
Revenue’s intranet:
COVID-19 Vaccine Certificate (CVC) requirements
For CVC requirements, eligible applicants for the CSP include:
•
Businesses or organisations which are not a regulated business or service under
the COVID-19 Protection Framework and meet the relevant CSP criteria.
•
Businesses or organisations which are a regulated business or service under
the COVID-19 Protection Framework, and have been operating in compliance with
the requirements for regulated businesses or services (whether following the CVC
rules or non-CVC rules) for both the affected period and the comparison period (or
part of that period) - in so far as those CVC requirements applied to all or part of
those periods.
Inland Revenue could – in line with the CSP terms and conditions that applicants agreed
to - request evidence, materials, and records from the applicant to demonstrate that they
had complied with the CVC requirements and taken all reasonably practicable steps (if
any) to minimise the decline in revenue. A repayment event could be actioned under the
CSP terms and conditions if the applicant could not demonstrate that they met these
requirements (i.e., if they could not demonstrate that they had complied with the CVC
requirements and taken all reasonably practicable steps (if any) to minimise the decline
in revenue).
The published CSP criteria can be found on Inland Revenue’s website at ird.govt.nz/covid-
19/business-and-organisations/covid-19-support-payment/eligibility-for-the-csp.
This
includes examples in relation to approval of CSP applications with CVC rules/non-CVC rules
and reasonably practicable steps (if any) to minimise revenue decline.
Right of Review
If you disagree with my decision on your OIA request, you can ask an Inland Revenue
review officer to review my decision. To ask for an internal review, please email the
Commissioner of Inland Revenue at: [email address].
Alternatively, under section 28(3) of the OIA, you have the right to ask the Ombudsman
to investigate and review my decision. You can contact the office of the Ombudsman by
email at: [email address].
If you choose to have an internal review, you can still ask the Ombudsman for a review.
Ref: 24OIA1406

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Publishing of OIA response
Please note that Inland Revenue regularly publishes responses to requests that may be of
interest to the wider public on its website. We consider this response is of public interest
so will publish this response in due course. Your personal details or any information that
would identify you will be removed prior to it being published.
Thank you again for your request.
Yours sincerely
Sharyn Rea
Project Programme Director
Customer & Compliance Services
Ref: 24OIA1406

[UNCLASSIFIED]
COVID-19 Support Payments Scheme
General Terms and Conditions for Grants
as at 18 February 2022
1  Introduction
1.1  These are the general terms and conditions applying to grants made under the
COVID-19 Support Payments Scheme (“these General Terms”).  Additional
definitions used in these General Terms are set out below.
1.2  These General Terms form part of your “CSP terms” for the purposes of section
7AAB of the Act and will be binding on you when your Application is completed by
you or on your behalf and we notify you that your Application is accepted.
1.3  You agree and confirm that:
(a)
by your Application being completed and submitted to us online, in other
electronic form or in any other manner specified or permitted by us from
time to time, you agree to be bound by your CSP Terms; and
(b)
any declarations, representations and statements that have been indicated
as agreed or confirmed in your Application (whether by ticking a checkbox
or otherwise, and whether by you or on your behalf) are to be treated as
declarations, representations and statements made by you.
2  Definitions and interpretation
2.1  In these General Terms:
“we”, “us”, “our” and related terms means the Crown acting by and through the
Commissioner of Inland Revenue.
“you” and “your” mean the person listed in the Application.  If a person listed in
the application is a partnership, an unincorporated joint venture, the trustees of a
trust or otherwise does not have separate legal personality, ”you” and “your”
(unless the context requires otherwise) also include each partner, joint venturer,
trustee or member jointly and severally. You are still bound by your CSP Terms
despite any changes to your membership or formation, including by death,
incapacity, or retirement of any partner, joint venture, trustee or member, the
admission of any new partner, joint venture, trustee or member, or in any other
way.
“your CSP Terms” means your Application, these General Terms and all eligibility
requirements and other terms forming “CSP terms” as defined in section 7AAB of
the Act.
“Act” means the Tax Administration Act 1994.
“Application” means an application for a grant under the COVID-19 Support
Payments Scheme (including each declaration, representation, statement, consent,
confirmation and undertaking) completed and submitted through our myIR online
service or in such other manner as we may specify or permit from time to time,
and whether by you or by a Tax Agent or other person on your behalf.

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[UNCLASSIFIED]

“Crown” means Her Majesty the Queen in right of New Zealand.
“Grant” means a grant made or to be made to you under the Act and the COVID-
19 Support Payments Scheme.
“Independent Trustee” means, if you are the trustee(s) of a trust, any such
trustee that is a solicitor, accountant, professional adviser or other person acting in
an independent role that is not a beneficiary or settlor of the trust (and whose
  relatives, spouse or partner, direct or indirect shareholders, directors or other
members are not beneficiaries or settlors of the trust).
“COVID-19 Support Payments Scheme” means the COVID-19 Support
  Payments Scheme established and administered by the Crown to provide support
to persons financially affected by a public health measure, business circumstance,
or matter, that is related to COVID-19 (COVID-19 circumstance), or by a group of
such circumstances.

“Repayment Event” has the meaning given in clause 5.1.
  “Tax Agent” means a “tax agent” as defined in the Act who complete s and
submits your Application on your behalf.

2.2  In addition, in these General Terms and unless the context requires otherwise:
(a)
headings and examples are for reference only;
(b)
the singular includes the plural and vice versa;
(c)
a reference to these General Terms and your CSP Terms, includes in each
case these General Terms and your CSP Terms as amended, varied, or
substituted from time to time;
(d)
a reference to a time of day is a reference to New Zealand time;
(e)
a reference to any monetary amount is to New Zealand currency;
(f)
a Repayment Event is continuing until it has been waived in writing by, or
remedied to the satisfaction of, us;
(g)
any legislation includes a modification and re-enactment of, legislation
enacted in substitution for, and a regulation, order-in-council and other
instrument from time to time issued or made under, that legislation; and
(h)
a reference to “in writing” (or equivalent) includes provision by email or
through online services operated by us (including the myIR online
service).

3  The Grant

3.1  We will make a Grant to you in the amount set out in your Application, subject to
your CSP Terms.  The Grant will be paid in a single lump sum advance to the bank
account nominated in your Application.

3.2  You must use the Grant in accordance with the declarations, representations,
statements and undertakings made in your Application.

3.3  You are not entitled to a Grant unless:

(a)
you have fully and accurately completed your Application, and provided
(and not withdrawn) all declarations, representations, statements,
consents, confirmations and undertakings (and any other information,

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[UNCLASSIFIED]

including evidence and other materials) requested from you in connection
with your Application, including from any Tax Agent; and

(b)
all declarations, representations, statements, consents and confirmations
made (and any other information, including evidence and other materials,
provided) by you or on your behalf in your Application are true and
accurate and not misleading; and

(c)
the requirements of section 7AAB of the Act are otherwise satisfied in
relation to the Grant.

4  Your undertakings to us

4.1  You undertake to us that you will:

(a)
promptly obtain, comply with and do everything needed to maintain any
authorisations required to enable you to submit your Application and
comply with your CSP Terms;

(b)
promptly supply us with such further information (including evidence and
other materials) that we may reasonably request in connection with the
Grant or for the purposes of your CSP Terms, including its administration
or enforcement and for audit purposes (and you acknowledge that we
may, at our discretion, also or instead exercise any powers we have under
the Act to require such information, evidence and other materials);

(c)
promptly notify us if any Repayment Event occurs;

(d)
comply with each declaration, statement and undertaking made in your
Application including in relation to (without limitation):

(i)  use of the Grant (including restrictions as to application and
distribution of proceeds); and

(ii)  keeping of evidence, materials or other records, and provision to us
for audit purposes (as required).

(e)
If you are a partnership, an unincorporated joint venture, the trustees of a
trust or otherwise do not have separate legal personality, you are required
to ensure that each partner, joint venturer, trustee or member (including
any person who becomes a partner, joint venturer, trustee or member
after the date of your Application) is jointly and severally bound by your
CSP Terms.

5  Repayment Event

5.1  Each of the events and circumstances set out in this clause is a “Repayment
Event”:

(a)
you breach or otherwise do not comply with any requirement in s 7AAB of
the Act;

(b)
you breach or otherwise do not comply with any undertaking set out in
clause 4.1;

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[UNCLASSIFIED]

(c)
any declaration, representation, statement, consent or confirmation (or
any other information, including evidence and other materials) made,
deemed to be made or provided by you or on your behalf or by any Tax
Agent in connection with your CSP Terms (including your Application) is
untrue, inaccurate or misleading in any material respect when your
Application is made or on the date the Grant is made to you.

5.2  If a Repayment Event occurs then, without prejudice to any other rights which we
may have under any other document or at law and without requirement for notice
from us or any other formality:

(a)
the Grant will be immediately repayable in full by you to us; and

(b)
interest in accordance with clause 5.3 will immediately become payable by
you to us.

5.3  Interest payable under clause 5.2 will not compound or itself bear interest, will be
  calculated by us and will accrue:

(a)
at an annual rate equal to our use of money interest (UOMI) rate for
underpayments of tax (being the taxpayer’s paying rate (as defined in the
Act) and currently available as the “debit rate” at
https://www.ird.govt.nz/managing-my-tax/penalties-and-
interest/interest-on-overpayments-and-underpayments);

(b)
from the date the Grant was first made available to you until the actual
date of repayment of the Grant in full to us (both before and after
judgment); and

(c)
from day to day on the amount of the Grant (as reduced by any
repayments of the Grant in accordance with this clause 5);

(d)
on the basis of the actual number of days elapsed and a year of 365 days
(or 366 days in a leap year).

5.4  If you are required to make payment under this clause 5, that payment must be
made:

(a)
in New Zealand dollars in such manner notified by us to you or published
on our website from time to time (if applicable);

(b)
without any set-off, counterclaim or condition, and without any deduction
or withholding for any tax or any other reason.

5.5  Any payment from you under this clause 5 will be applied first towards payment of
accrued interest and then towards repayment of the Grant.

6  General

6.1  Notices:
(a)
Any communication to be made under your CSP Terms must be made in
writing and shall be:

[UNCLASSIFIED]

(i)
provided through the myIR online service or any other online
service as we may designate from time to time; or

(ii)
delivered or sent to the address or email address of the relevant
party, and marked for the attention of the person or office holder,
set out in your Application (in the case of communications from us
to you) or for that purpose on our website (in the case of
communications from you to us); or

(iii)
such other address or email address as that party may from time to
time designate to the other.

(b)
Any communication to be made under or in connection with your CSP
Terms shall be deemed to have been made:

(i)
if delivered through any online service or by hand, upon delivery;

(ii)
if sent by pre-paid post, 3 working days after posting; and

(iii)
if sent by email, when actually received in the recipient’s inbox in
readable form.

6.2  Amendment: We may change your CSP Terms (including by way of amending
these General Terms) from time to time by at least 30 days’ notice to you.

6.3  Independent trustees: if you are the trustees of a trust, the liability of any
Independent Trustee under your CSP Terms is limited to the trust property
available to meet that liability.  However, this limitation does not apply if the
Independent Trustee loses its right to be indemnified out of the trust property, or
diminishes the value of the trust property through its fraud or wilful breach of trust
(in which case we can claim against the Independent Trustee personally to the
extent we are unable to recover amounts due to us from the trust property).

6.4  Publication of information:  You acknowledge that your name, the amount of
the Grant and the period of the Covid-19 circumstance(s) for which you received
the Grant may be published on a publicly available website administered by Inland
Revenue.  You have a right to access and correct any personal information about
you under the Privacy Act 2020.
6.5  Governing law: Your CSP Terms are governed by New Zealand law. The parties
irrevocably submit to the non-exclusive jurisdiction of the courts of New Zealand.

6.6  Offences: We may take action against you or prosecute you for offences under the
Crimes Act 1961 or the Act.  You may be liable to pay penalties, fines or subject to
imprisonment as a result.  Such prosecution does not stop other legal actions being
taken against you.

Document Outline