Federated Farmers has announced  it will engage openly with Inland Revenue on new rules for the tax treatment of livestock.

Last year the government announced that the tax treatment of livestock would be reviewed, and this was confirmed in May’s budget as part of a wider ranging review, into how high-value assets are treated for tax purposes.

Federated Farmers President and economics spokesperson, Bruce Wills, says the organisation has discussed the matter in detail with the Inland Revenue.

He stresses that farmers do understand the importance of paying their fair share of tax.

Mr Wills says that with livestock, there has been some concern at the ease farmers have switched between the Herd Scheme and the National Standard Cost scheme. 

And, he says, farmers, as small and medium sized businesspeople, are heavily reliant on their accountant for tax advice. 

‘It’s a complicated area and you do rely on your advisors to interpret it for you’ he says.