We're aware the effects of the earthquakes are causing financial issues for some farmers and fishers and it's likely to affect their income for the 2017 and later years.
Income equalisation scheme - deposits
We're able to accept later deposits to the income equalisation scheme than usual. For farmers or fishers whose current or future income will be significantly affected by the earthquakes, 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:
- provide evidence of how they have been significantly affected by the earthquakes - the minimum criteria for this is a statement signed by the farmer or fisher or their tax agent that the farmer or fisher has been significantly affected
- ensure the deposit is received by us by 30 April 2017
- provide a notice with the deposit stating that:
- it is for the main income equalisation deposit scheme
- it is to apply for the 2016 tax year, and
- the late deposit criteria in this notice apply.
Income equalisation scheme - withdrawals
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.
We will allow farmers and fishers materially affected by the Hurunui/Kaikoura earthquakes to make early withdrawals. In this case, materially affected means that net income has been or will be significantly decreased as a result of the earthquakes and the withdrawal is needed to cover an income gap or financial gap.
All applications for an early refund must be in writing and will take approximately 20 days to be processed.
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, refer to our Standard Practice statement on income equalisation deposits and refunds.
For more information please contact us on our emergency helpline 0800 473 566.