Govt. Decision On Tax Relief Pleases Farmers

Press, Volume CI, Issue 29719, 12 January 1962, Page 10

Govt. Decision On Tax Relief Pleases Farmers

{New Zealand Press Association)

WELLINGTON, Jan. 11. Farmers would appreciate the application of the disaster provisions of the Land and Income Tax Act, 1954, in the present circumstances, said the general secretary of Federated Farmers (Mr A. P. O’Shea) today. Thanking the Minister of Finance (Mr Lake) and the Government for the action, Mr O’Shea said there appeared to be some misunderstanding by the general public about the position. It was not generally appreciated that animal farming was the only activity in New Zealand where, when capital items were disposed of, they were liable to be included as income. Farmers, however, could charge the amount as an expense When they replaced the capital. Section 103(A) of the act provided in a disaster for the waiving of this obligation to include as income returns from the sale of capital stock. But the replacement expenses in the future could not be charged to income. Mr A. M. McNeill, Hawke’s

Bay president of Federated Farmers, said that fanners were most gratified with the Minister’s announcement about taxation relief for farmers selling livestock because of shortage of feed. “It means the farmer can sell or kill capital stock with the assurance thait the money received can be held in full for replacement when feed and circumstances allow,” he said.