IRD farmer tax sting 'harsh' – tax expert
Inland Revenue Department is harsh in going after farmers for what was probably legitimate business restructuring, a tax expert says.
A bill brought before parliament last week closes a loophole which allowed farmers to choose between methods of valuing their herds to get a more favourable tax rate.
But now the IRD is auditing those who have employed the method in the past, saying it was tax avoidance.
As reported in today's National Business Review print edition, the IRD has indicated it will investigate 400 farmers for using the loophole.