Tak­ing a po­si­tion on new live­stock tax rules

Matamata Chronicle - - Rural Delivery -

Fed­er­ated Farm­ers will en­gage openly with In­land Rev­enue on new rules for the tax treat­ment of live­stock.

‘‘Last Oc­to­ber, the Min­is­ter of Rev­enue an­nounced that the tax treat­ment of live­stock will be re­viewed and Fed­er­ated Farm­ers has dis­cussed this in de­tail with In­land Rev­enue,’’ said Bruce Wills, Fed­er­ated Farm­ers pres­i­dent and its eco­nom­ics and com­merce spokesman.

‘‘This re­view was con­firmed in May’s Bud­get and forms part of a wider rang­ing re­view into how high-value as­sets are treated for tax pur­poses,’’ Mr Wills said.

‘‘Fed­er­ated Farm­ers will now ex­am­ine In­land Rev­enue’s pro­pos­als for rea­son­able­ness and real-world work­a­bil­ity. Let me also stress that farm­ers do un­der­stand the im­por­tance of pay­ing their fair share of tax.

‘‘With live­stock, there’s been some con­cern at the ease with which farm­ers have switched be­tween the Herd Scheme and the Na­tional Stan­dard Cost Scheme. This is es­pe­cially the case when live­stock val­ues are ex­tremely volatile.

‘‘Broadly speak­ing, the Herd Scheme treats live­stock as a cap­i­tal as­set us­ing In­land Rev­enue’s na­tional av­er­age mar­ket val­ues. The Na­tional Stan­dard Cost Scheme val­ues pur­chased live­stock at cost plus as­so­ci­ated costs of hus­bandry. Farm­ers, as small and medium sized busi­ness­peo­ple, are heav­ily re­liant on their ac­coun­tant for tax ad­vice. It’s a com­pli­cated area and you rely on your ad­vis­ers to in­ter­pret it for you. Fed­er­ated Farm­ers will now con­sult mem­bers to de­velop a po­si­tion to take back to In­land Rev­enue,’’ Mr Wills said.

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