STOCK LOSSES IN SNOW

Press, Volume XC, Issue 27403, 16 July 1954, Page 7

STOCK LOSSES IN SNOW

RESERVE FUNDS FOR FARMERS OPERATION OF SCHEME EXPLAINED (New Zealand Press Association) WELLINGTON, July 15. High-country sheepfarmers could obtain taxation relief by way of reserve against loss of stock from heavy snowfalls, said the Associate Minister of Finance (Mr C. M. Bowden) today when discussing the activities of the Snow Loss Reserve Committee. The committee consists of Messrs C. C. Holland, of Christchurch (chairman), D. McLeod, of Cass, and N. A. Rowntree. District Commissioner of Taxes, of Christchurch. Minimum deposits of £250 and the maximum, calculated at £1 a head for sheep and £5 for cattle normally depasturing on the affected areas, could be made with the Commissioner of Inland Revenue during the year, and those sums would be held in a reserve in the farmer’s name, said the Minister. No interest was allowed on deposits, but an amount equal to the deposit was deductable for taxation purposes from income derived during the year In which deposits were made. Applications to obtain a refund of deposits were to be made in writing to the secretary of the Snow Loss Reserve Committee through the District Commissioner of Taxes in the area where/taxpayers lived, and should be made within six months of the end of the income year in which stock losses occurred, said Mr Bowden. If deposits had been made and snow losses did not occur, farmers were entitled to receive a refund, which would then increase their liability for taxation, the Minister said.