Deferred Tax On Livestock

Press, Volume CVI, Issue 31088, 17 June 1966, Page 1

Deferred Tax On Livestock

(From Our Parliamentary Reporter' WELLINGTON, June 16. Deferment of taxation arising from increased livestock until the farmer is in a better position to meet the liability, is provided for in the Budget.

The Agricultural Production Council and the Government had been considering how best to maintain the growth of livestock numbers, said Mr Lake. The new incentive was related directly to increases in livestock numbers.

Entry to the scheme would be optional, and could be made any time from April 1, 1966, or from the start of the corresponding accounting year, he said. On entry, a livestock base would be established. This would be the greater of the livestock numbers carried at the end of either of the two preceding accounting years. Subsequent increases over this base would be shown at a nil standard value for tax purposes. Taxation would be deferred on the difference between the nil and the usual standard value of the increased stock. Mr Lake said that when a farmer sold or otherwise disposed of all his livestock, the full market value would become taxable income.

In addition, the farmer would have the option at any time before the sale of paying the tax on the usual standard value. Existing tax incentives for farmers, said Mr Lake, had contributed directly to more farm production, and significant increases in exports.

Mr W. Baird, of Dipton, Southland, has been elected president of the Counties Associatic^, —(P.A.)