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Income Tax Act 2007

Timing and quantifying rules - Valuation of livestock - Herd scheme

EC 18: Inaccurate herd value ratio

You could also call this:

“Incorrect livestock valuation can lead to tax reassessment”

If you’re using a herd value ratio for your livestock that isn’t correct, the Commissioner can ask you to work it out again. A herd value ratio is a way to figure out the value of your animals. If the new calculation is different from the one you were using, the Commissioner can change your income tax assessment for that year and any years after. They can also replace the old ratio with the new one you’ve worked out.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514388.

Topics:
Money and consumer rights > Taxes
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EC 17: Herd value ratio, or

“Calculating the value of farm animals using a specialised ratio”

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EC 19: Chatham Islands adjustment to herd value, or

“Special value adjustment for livestock on the Chatham Islands”

Part E Timing and quantifying rules
Valuation of livestock: Herd scheme

EC 18Inaccurate herd value ratio

  1. The Commissioner may require a person who is using an inaccurate herd value ratio for a type of livestock in an income year to recalculate the herd value ratio. If the recalculation differs from the existing ratio for the income year, the Commissioner may amend the assessment of income tax for the income year and any later income year and may substitute the recalculated herd value ratio for that previously applied by the person.

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