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EC 18: Inaccurate herd value ratio
or “Incorrect livestock valuation can lead to tax reassessment”
You could also call this:

“Special value adjustment for livestock on the Chatham Islands”

If you have livestock on the Chatham Islands, you can ask for a special adjustment to the value of your herd. You need to tell the government about this by following the rules in section EC 11.

When you use this Chatham Islands adjustment, it changes how much your herd is worth at the end of the tax year you asked for it. This new value will keep being used in future years until you stop using the herd scheme for that type of animal, or if you don’t use the herd scheme for that type of animal on the Chatham Islands for two years in a row.

The Commissioner, who is in charge of taxes, decides how much the Chatham Islands adjustment should be. They can change this amount from time to time.

When the Commissioner sets or changes the adjustment, it becomes a type of law called secondary legislation.

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Next up: EC 20: Herd livestock disposed of before values determined

or “ What to do if you sell farm animals before the government sets their value ”
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Part E Timing and quantifying rules
Valuation of livestock: Herd scheme

EC 19Chatham Islands adjustment to herd value

  1. A person may adopt an adjustment for herd livestock on the Chatham Islands by giving notice in the way described in section EC 11.

  2. When a person adopts a Chatham Islands adjustment as a herd value ratio, it applies as a herd value ratio to a particular type of livestock on the Chatham Islands at the end of the income year specified in the notice and in later income years until—

  3. the income year in which the person stops valuing, under an election, livestock of that type in the herd scheme; or
    1. the income year following 2 consecutive income years in which the person has not valued livestock of that type on the Chatham Islands under the herd scheme.

      1. The Commissioner must set and may vary from time to time the level of Chatham Islands adjustment to the herd value ratio that applies in an income year.

      2. The instrument that sets or varies an adjustment under subsection (3) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

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      Notes
      • Section EC 19(4) heading: inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
      • Section EC 19(4): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).