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Inland Revenue

Tax Policy

Livestock valuation elections



The present requirement for farmers to make a separate written election to use the herd scheme should be repealed.


This requirement has existed since the herd scheme was introduced in 1997. The need for it has been well illustrated over the last few years when the various herd scheme rules have been pushed to the boundary, and, in some cases, potentially over the boundary. Inland Revenue’s use of this written notice has been a part of ensuring that farmers have complied with the various technical rules over this period.

While the amendments proposed in the bill should limit opportunities for farmers and their accountants to push the boundaries, this has yet to be proven. In the meantime, officials believe that the information gained from this notice is still necessary.


That the submission be declined.