Hon Peter Dunne
Minister of Revenue

Friday 15 March 2013 Media Statement

Dunne welcomes IRD support for North Island drought farmers

With the entire North Island now declared to be in a state of drought by Primary Industries Minister Nathan Guy, Revenue Minister Peter Dunne today welcomed Inland Revenue’s decision to further extend its income equalisation discretions to drought-stricken farmers.

“I am pleased that Inland Revenue is helping out in these very difficult circumstances by extending its discretions to all drought-affected farmers,” Mr Dunne said.

“Clearly, tax will not be top of the affected farmers’ priorities right now, but I encourage them to talk to their accountants in the next two or three weeks as they will likely have longer term financial and taxation issues,” Mr Dunne said.

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farmers to better manage peaks and troughs in their income by allowing money to be put aside from a better year and withdrawn against a not so good year.

Inland Revenue has decided to relax these rules by allowing late deposits from the 2012 income tax year to be made up to 30 April this year, regardless of when the 2012 tax return is filed or the due date for filing that return. Also early refunds will be allowed.

“While Inland Revenue cannot do a lot, this may help farmers to better plan their cash flow planning at a difficult time,” Mr Dunne said.

Details of the Inland Revenue response for drought affected farmers can be found at www.ird.govt.nz

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