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Farmers Welcome Tax Law Change

4 March 2004 PR 54/04
Farmers Welcome Tax Law Change

Federated Farmers of New Zealand (Inc) welcomes today's announcement that the government will change the law to give the tax department room to forgive interest charges on late tax payments.

"Farmers and other businesses hit by floods and storms appreciate the government giving them a bit of breathing space," said FFNZ President Tom Lambie.

Under current law, the Inland Revenue Department (IRD) has no discretion to waive interest charges on late tax payments. But today the government said it would legislate to allow IRD to waive such charges on taxpayers unable to make payments on time due to flooding.

"This move follows approaches by Federated Farmers, which has conveyed concerns of members who have lost their financial records or could not access them after the lower North Island floods."

Federated Farmers has no problem with the government saying it would set strict criteria on waiving interest. The criteria says that taxpayers have to be significantly affected by flooding, and they will have to apply for relief.

Ends

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