Pat On Back For Tax Man

16 June 2004

Pat On Back For Tax Man

Federated Farmers of New Zealand (Inc) thanks the Inland Revenue Department (IRD) for its work on tax-related matters arising from February storm damage in central New Zealand.

"Federated Farmers appreciates the tax department's significant support for farmers adversely affected by the storm event and its aftermath. We cannot speak highly enough of the department's effort in trying to reach out to individual taxpayers," said President Tom Lambie.

Mr Lambie made the comments to a Parliamentary select committee considering changes to the Taxation (Annual Rates, Venture Capital and Miscellaneous Provisions) Bill. The changes are included in Supplementary Order Paper (SOP) 218.

An example of IRD's good work is the speed it responded to the storm. It set up a dedicated team and took a pragmatic approach to dealing with difficulties faced by individual farmers, such as those who lost all financial records.

Federated Farmers is very supportive of the changes proposed by the SOP.

"While Federated Farmers had some concerns with the narrowness of the SOP’s provisions, we still strongly support the SOP on the basis that it will provide relief to businesses affected by the February floods," Mr Lambie said.

"We are pleased that some of the provisions will be applied to a wide set of circumstances where goods and buildings have been destroyed," he said.

Among the changes fully supported by the federation, people who gift livestock to farmers won't have to pay tax on the market value of the stock they give. This is sensible as many people saw the current legal requirements as a tax on charitable acts.

ENDS

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