Tax relief for Northland flood affected farmersRevenue
Revenue Minister Todd McClay has said that flood affected farmers in Northland will be offered assistance through Inland Revenue’s income equalisation discretion following the declaration of a medium scale adverse event by Primary Industries Minister Nathan Guy this morning.
“The Government recognises that this will be a difficult time for many in Northland as they come to terms with the damage caused by recent severe weather events. This assistance from IRD will give greater certainty to affected farmers and is designed to make the coming months easier for them as they deal with the damage done to their farms,” Mr McClay says.
The income equalisation scheme allows farmers to better manage peaks and troughs in their income by allowing money to be put aside from a better year and withdrawn against a not so good year. Inland Revenue has agreed to relax these rules by allowing late deposits from the 2014 income tax year to be made up to 30 April 2015, regardless of when the 2014 tax return is filed or the due date for filing that return. Early refunds will also be allowed.
“Clearly tax will not be top of mind for affected farmers right now, however I encourage them to talk to their accountants to consider whether this relief may be helpful in their specific situation," Mr McClay said.
Inland Revenue is expected to publish details of its response for flood affected farmers later this week.