WELLINGTON: The New Zealand government has announced to offer tax relief for drought-affected farmers in the eastern South Island under the income equalization scheme.
“The Government recognizes that this will be a difficult time for many affected farmers. This assistance from Inland Revenue will give greater flexibility to affected farmers around their tax obligations, and is designed to make the coming months easier for them as they deal with the effects of the drought,” Revenue Minister Todd McClay said.
The income equalization 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farmers to better manage peaks and troughs in their income by allowing money to be put aside from a better year and withdrawn against a not-so-good year.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 relaxed these rules by allowing late deposits from the 2014 income tax year to be made up to April 30, 2015, regardless of when the 2014 tax return is filed or the due date for filing that return. Early refunds will also be allowed.
