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Farmers facing higher tax bills

Farmers are facing higher tax bills this year according to this article from TVNZ.

The government’s “national standard cost values” (NSC), used by many farmers’ accountants to calculate taxable income, have increased by about 30% for dairy cattle and 13-14% for beef cattle and sheep.

The new livestock production costs reflected what had happened on farms during the first three quarters of 2008.

The falls in costs, which started to show up in the fourth quarter, would be taken into account in the 2010 NSC values.

I beleive the article is misleading because not all farmers use the NSC method of valuing livestock. The herd scheme which is available to most farmers ensures that yearly fluctuations won’t cause huge spikes in tax liabilites.

Anyone who has ever dealt with livestock taxation would know that it is a very confusing and complicatied area of the tax law.
 

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This entry was posted on Friday, February 6th, 2009 at 10:15 am and is filed under Tax General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Farmers facing higher tax bills”

  1. Accountant Christchurch Says:
    August 21st, 2009 at 7:44 pm

    I agree. Not all farmers uses NSC method. They will be having a hard time dealing with the increase of their taxes.

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