Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


New livestock tax rules in Budget 2012

24 May 2012

New livestock tax rules in Budget 2012

Federated Farmers believes tighter tax rules around livestock valuations have been well-signalled.

“Most farmers are reliant on accountants for their business tax needs and I’m no exception,” says Bruce Wills, Federated Farmers President and its economics and commerce spokesperson.

“This is no different to a range of professions, such as freelance journalists or even actors. We all recognise the need to meet our tax obligations without overpaying. I don’t think there‘d be too many wage and salary earners who’d disagree.

“Back in March, the Government announced the herd scheme election would be irrevocable from August 2011. 2011 is not a misprint as it is being applied retrospectively.

“This is unusual but we were also aware a spike in livestock values had encouraged some farmers, on advice from their accountants, to elect out of the herd scheme. Arguably this may have come as a result of impending legislative changes clearly signalled last August.

“The Government made it clear it wasn’t prepared to wear on-going fiscal risk and we understand why. These changes will protect $184 million over four years.

“We need to reassure farmers it won’t impact either past tax paid or tax to be paid in the 2011-12 financial year. On that basis we accept this change.

“More generally however, we continue to prefer for a 24-month notice period instead of making the election irrevocable.

“We do appreciate Government listening to Federated Farmers when people change their farming operation to a fattening regime. Elections here will continue to have a cost-based scheme option.

“We are still trying to convince Inland Revenue to allow elections when sharemilkers move into farm ownership.

“We want sharemilkers to have the option of electing out of the herd scheme when they down-size herds ahead of buying their first farm. Given debate about the problems young farmers have getting onto the farm ownership ladder, this seems counter productive.

“Purchasers in ‘associated party transactions’ will be required to adopt the vendor’s herd scheme election and base herd numbers. This exception was requested by Federated Farmers submission when there is a complete inter-generational change of ownership

“Unlike herd elections, associated party transactions took effect from 28 March 2012.

“While the Government has announced these changes as ‘made’, they in fact require amendments to the Income Tax Act. Federated Farmers will be engaging in this process,” Mr Wills concluded.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news