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We're aware that the recent storms are causing financial issues for many farmers in the Franklin, Hauraki, and Thames-Coromandel district and understand it's likely to affect income for the 2017 and later years.
We're able to accept later deposits to the income equalisation scheme than usual.
For farmers whose current or future income will be significantly affected by the storms, we'll allow late deposits for the 2016 income tax year up to 30 April 2017, regardless of when the 2016 return is filed or what the due date is for filing the tax return.
Affected farmers will need to:
Normally income equalisation deposits are not available for refund until 12 months after the deposit is made. However we do have discretion to allow early refunds, particularly in the case of "adverse events" or when the person is suffering serious hardship.
We also have the ability to determine a "class of case" that qualify for an early refund.
We will allow farmers materially affected by the storms to make early withdrawals. In this case, materially affected means that the farmer is in financial difficult, or is incurring extra expenditure as a result of the storms.
All applications for an early refund must be in writing and will take approximately 20 days to process. It should be remembered that the refund will be income in the year that the application is made unless it is elected to treat the refund as income in the prior income year where the application for refund is made in the specified period.
For more information on income equalisation and deposits please refer to our Standard Practice Statement 17/01 Income equalisation deposits and refunds (August 2017).
For more information please contact us on our emergency helpline 0800 473 566.
New Zealand legislation
Income Tax Act 2007: