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Inland Revenue

Tax Policy

Livestock classes

Clause 59

The bill proposes that, from the tax year ended 31 March 2013, the Friesian and Jersey beef cattle classes, and the Red and Wapiti deer classes, be combined as at the margin it can be difficult to determine which class a particular line of stock should be in. Further, there are anecdotal suggestions that some advisors view this as an opportunity for tax planning.


(New Zealand Institute of Chartered Accountants, WHK)

This should be deferred as the legislation will not be passed by May 2013 when the 2013 herd values will be announced.


The submission is correct. However, in the circumstances it is appropriate to deal with the underlying dilemma and suggested opportunity. This could be done by requiring that, for the purposes of calculating minimum herd scheme numbers for the 2012–13 income year, these classes are combined.


That the submission be accepted and instead, for the 2012–13 year, the classes of Friesian and Jersey dairy cattle, and Red and Wapiti deer, be combined for the purposes of calculating minimum herd scheme numbers.