ACT Urges Re-think Of Disaster Relief Bill

Tuesday 16 Mar 2004 Gerry Eckhoff Press Releases -- Taxation

ACT New Zealand Rural Affairs Spokesman Gerry Eckhoff today urged the Government to fully address the tax implications of disaster relief, following its decision to fast track legislation to assist farmers struggling to meet their tax payments.

"While ACT supports the urgency given to the passing of the Taxation Disaster Relief Bill - due before the House this week - it clearly doesn't go far enough," Mr Eckhoff said.

"The tax implications for cash and feed donations are not spelt out. Nor are matters like the immediate write-off of items - such as culvert machinery and sheds - which were lost in last month's devastating floods.

"Further, anomalies occur, such as the ability to depreciate damage repairs over a 20-year period, while items lost during floods or natural events don't qualify under existing tax law.

"While these issues aren't as pressing as the current Bill, they must be addressed. I urge the Government to draft a new Bill to ensure the full effects of flood, fire and drought, are covered as soon as possible," Mr Eckhoff said.

ENDS

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