With extreme weather becoming more common in many parts of New Zealand it may be worth remembering that tax relief and income assistance are available to people affected by extreme weather events. IRD have a range of measures to help, depending on the individual circumstances and the particular event.
These measures include:
- The income equalisation scheme for farmers.
- Provisional tax estimates
- Help with outstanding tax and late payment and filing penalties.
IRD can also provide:
- Certificates of exemption
- Special tax codes
There are some other tax measures you could consider, depending on your personal circumstances:
- Deductions can be made for farm losses when certain improvements are destroyed or irreparably damaged.
- Livestock or materials donated because of an adverse event may be treated as zero-value rated.
- Payments or donations from charities aren’t taxable or liable for GST.
- The tax treatment of insurance payments depends on what the payment is compensating, eg, insurance for loss of capital assets is non-taxable, but income-replacement insurance may be taxed.
- Interest on money borrowed to keep the farm going may be deductible.
- You may be eligible for the independent earner tax credit.
We are here to help and invite you to give us a call 09 273 3682 if you need any further assistance..