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