MO PROSPECT OF EARLY CHANGE IN STOCK ASSESSMENT

Gisborne Herald, Volume LXXVI, Issue 22851, 22 January 1949, Page 3

MO PROSPECT OF EARLY CHANGE IN STOCK ASSESSMENT

FARM TAXATION

‘'l can liohl out no immediate prospect of any alteration in the present system of treating farmers’ livestock as trading stock for the purpose of income tax assessment,” said the Minister of Finance, air. W. /Nash, in reply to representations from Federated Farmers last week. The federation had asked that legislation should be enacted to alter tho existing system of taxing a farmer in cases where he sold his livestock at market values which were in excess of standard values.

The principle involved was an important one. said Mr. Nash, but he could see no practicable alternative to treating livestock as trading stock. While that was so regarded, the ordinary rules as to valuation and the inclusion as income of increases in value realised on sale had to be adhered to. It was difficult to find a method which would meet the objections of farmers and at the same time preserve equity among all classes of the community. Federated Farmers, states a news bulletin from the federation, has since pointed out that in Canada and the United Kingdom, farmers’ livestock are treated for taxation purposes as capital assets. In the United Kingdom, farmers have the option of treating their livestock for taxation purposes as capital assets or as trading stock and what is practicable and equitable there would be practicable and equitable in New Zealand.

The present New Zealand system operated harshly on the store-stock breeding farmer, stated the federation. He was a breeder rather than a trader in stock; his position was extremely difficult. The proposed amendment would not allow any type of farmer to avoid taxation, but would be more just and equitable.

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