Wellington, Sept 8 NZPA - People unable to meet their tax obligations as a result of the Canterbury earthquake may be able to have late payment penalties and interest wiped, Revenue Minister Peter Dunne says.

He said the Inland Revenue Department (IRD) would make things as easy as possible for those affected by the quake and would take a sympathetic and realistic approach.

Situations would be looked at on a case-by-case basis and the IRD would take into account individual circumstances when making decisions about late payment and late filing penalties and interest.

"We appreciate that sorting out tax matters will not be a priority for Canterbury people and businesses yet.

"People should get their affairs up to date when their circumstances allow," Mr Dunne said.

The IRD has set up a disaster response phone line (0800 473566) for people and business facing difficulties meeting tax obligations as a result of the quake.

Mr Dunne said payments that people were expecting from the IRD, such as Working for Families tax credits, would be made as usual.

People and businesses who donate to the earthquake relief fund will get tax back on donations over $5, he said.

IRD's office in Christchurch was closed due to water damage but would reopen next week.

Mr Dunne said the IRD was also working on technical tax issues surrounding damaged or destroyed property and associated insurance claims.