WELLINGTON, Jan. 18 (Xinhua) -- New Zealand Revenue Minister Stuart Nash on Thursday confirmed tax relief measures will be extended to farmers in drought areas.
In late December and early January, the drought was classified as a medium-scale adverse event across many parts of New Zealand.
The declaration of an adverse event allows government agencies to step up with additional support for farmers and growers in affected areas, Nash said in a statement.
"We know the rural community is having a tough time. Many farmers will have more urgent issues on their minds than tax compliance. Inland Revenue has confirmed there will be greater flexibility and assistance for those affected," he said.
Any farmers who are struggling to meet their tax obligations because of the adverse conditions are encouraged to talk to their accountant and engage with the Inland Revenue, New Zealand's taxation department, Nash said.
The Inland Revenue will allow farmers in drought areas to make late income equalization deposits for the 2016-2017 income tax year. They will also be able to apply for early refunds. This allows farmers to smooth out fluctuations in their income from year to year, he said.
"Farmers can now better plan their financial response to the drought conditions," the minister said, adding that tax rules are able to take account of extraordinary events like droughts, floods or earthquakes.
