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If you have tax from culling your herd due to Mycoplasma bovis (Mbovis), one option for assistance is the income equalisation scheme. We assess this type of situation by either a:

  • case-by-case basis
  • class of case.

This may have an impact in the 2018-2019, 2019-2020 or 2020-2021 tax years, depending on when you culled the herd.

Deposits to the income equalisation scheme

We're able to accept later deposits to the income equalisation scheme for the 2018-2019 tax year.

For farmers affected by Mbovis, we'll allow late deposits for the 2018-2019 tax year up to 30 April 2020. This is regardless of when the 2019 tax return is filed or what the due date is for filing the tax return.

As an affected farmer, you'll need to:

  • provide a statement that they have been affected by Mbovis
  • make sure the deposit is received by Inland Revenue by 30 April 2020
  • provide a notice with the deposit stating it applies to the 2018-2019 tax year and that the late deposit criteria apply.

Refunds from the income equalisation scheme

We're able to make early refunds from the income equalisation scheme where satisfied that an affected person will use a refund to assist with certain problems resulting from Mbovis. These can be either:

  • expenditure
  • financial difficulty
  • replacing stock.

We'll need a signed statement, by the farmer or the farmer's tax agent, that the refund will be used in this way. Generally, a refund will be considered income in the year a request is made. However, the Commissioner will consider a longer period for these cases.

Register for income equalisation in myIR

Last updated: 19 Apr 2021
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