The drought which is causing financial issues for many farmers and growers, has been extended and now includes all the North Island (excluding the Taranaki, Ruapehu and Whanganui districts) as well as Tasman, Marlborough, Kaikoura, North, Mid and South Canterbury, Otago and the Chatham Islands.
Income equalisation scheme - deposits
We're able to accept later deposits to the income equalisation scheme.
For farmers and growers whose current or future income will be significantly affected by the drought in the affected areas, we'll allow late deposits for the 2020 income tax year up to 30 June 2021, regardless of when the 2020 return is filed or what the due date is for filing the tax returns.
An affected farmer/grower will need to:
- provide evidence of how they were significantly affected by the drought - the minimum criteria for this is a statement signed by the farmer, grower or tax agent that the farmer or grower was significantly affected
- ensure the deposit is received by us by 30 June 2021
- provide a notice with the deposit stating that:
- it is for the main income equalisation deposit scheme
- it is to apply for the 2020 tax year
- 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, particularly in the case of a medium-scale adverse event 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.
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 when the application for refund is made in the specified period.
For more information on income equalisation and deposits please refer to Standard Practice Statement on income equalisation deposits and refunds.
For more information please contact us on our emergency helpline 0800 473 566.
New Zealand legislation Income Tax Act 2007.
Section EH 4(4)
Section EH 15(3)