Please enter your email address to receive a password reminder.
Log into Tax-News+
New Zealand has opened its disaster tax relief scheme to farmers impacted by floods in the Bay of Plenty.
The Inland Revenue said that it would allow these farmers to make late deposits to its income equalisation scheme for the 2016 income tax year up to May 31, 2017, regardless of when the 2016 return is filed or what the due date is for filing the tax return.
It added that an affected farmer will need to provide evidence of how they have been significantly affected by the floods.
The authority will also relax its 12-month waiting period for withdrawing income equalisation deposits to allow impact farmers to receive early refunds "particularly in the case of 'adverse events' or when the person is suffering serious hardship."
"In this case, materially affected means that the farmer is in financial difficult, or is incurring extra expenditure as a result of the weather event," it said.
Applications for an early refund must be in writing and will take approximately 20 days to process. The Inland Revenue said that the refund will be income in the year that the application is made unless it is elected to treat the refund as income in the prior income year where the application for refund is made in the specified period.
IMPORTANT NOTICE: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
All rights reserved. © 2017 Wolters Kluwer