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Tax deferral to benefit producers in the West
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Tax deferral to benefit producers in the West
Tax deferrals for 2008 have been granted to producers in various regions across Saskatchewan, Alberta and British Columbia, particularly those who had to sell off cattle to avoid financial losses because of drought-like conditions.
December 23, 2008 By Agriculture and Agri-Food Canada
December 19, 2008
The Government of Canada is offering 2008 tax deferrals to producers who have been dealing with drought in designated areas of northern Alberta, southern Saskatchewan and the Peace River Regional District of northern BC. Federal Agriculture Minister Gerry Ritz announced on Friday that producers who resorted to selling off cattle to avoid financial losses due to drought conditions will be eligible for a one-year tax deferral on 2008 income from those sales.
"Producers need to be able to make good business decisions when dealing with drought," said Minister Ritz. "This Government is making sure producers can recover following the drought last summer when they were forced to sell cattle. Producers will be able to use these savings when they rebuild their herds in the spring."
The deferral was made after reviewing forage yield, precipitation, soil moisture and water supply data for the 2008 growing season, and provides a management option to breeding livestock owners. Owners of breeding livestock in various regions of the three provinces who were forced to sell all or part of their herd in 2008 due to drought conditions are eligible for the deferral.
Producers who reduced their breeding herds by at least 15 per cent are eligible. Thirty per cent of income from net sales can be deferred if the herd has been reduced by at least 15 per cent, but less than 30 per cent. Where the herd has been reduced by 30 per cent or more, 90 per cent of income from net sales can be deferred.
"Agriculture is the backbone of our economy, especially during economic instability," said Minister Ritz. "Our Government will continue to ensure that producers can weather economic storms and continue to drive the Canadian economy."
Eligible producers will be able to request this deferral when filing their 2008 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.
To see breakdowns of all the regions covered under this program, go to the separate news releases found at: www.agr.gc.ca/cb/index_e.php
