Revenue Minister Judith Collins today welcomed Inland Revenue’s decision to exercise discretions on income equalisation for farmers who are significantly affected by the recent flooding around the Franklin Ward, Hauraki District and Thames- Coromandel District.
“This step will help provide relief for those famers by giving them an option to help address the financial consequences of the flooding,” Ms Collins 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farmers to better manage peaks and troughs in their income by allowing money to be put aside from a better year and withdrawn against a less favourable year.
Inland Revenue has decided to relax the rules for farmers who are significantly affected to allow late deposits from the 2016 income tax year to be made up to 30 April 2017, regardless of when the 2016 tax return is filed or the due date for filing that return. Also early refunds will be allowed.
“I have every sympathy for affected farmers. They should consult their accountants to consider whether this relief will be helpful in their particular situation,” Ms Collins says.
Inland Revenue will provide more information at www.ird.govt.nz. For information on the income equalisation scheme, see www.ird.govt.nz/business-income-tax/income-equalisation/how-it-works/.