Onus is on farmers to supply the information
SELF assessment for taxation may not be as simple as the Inland Revenue would have you believe.
While the basic form, sent out this week, runs to just eight pages, accountants Grant Thornton believe farmers will have to submit substantially more detail than that requested in order to satisfy "minimum disclosure" requirements.
"It must be remembered that, under self assessment, the onus remains with the farmer to submit enough information to satisfy any level of inspection the IR might chose to make," it says.
And, even though the IR only has 12 months in which to examine the forms, farmers should not assume that, just because they have not heard anything, their tax submissions are in the clear.
The IR can look back at several years figures. Grant Thornton recommends farmers submit:
• Full gross margin accounts, broken down by enterprise.
• Full tax estimates, showing items claimed and disallowed for tax purposes.
• Explanations for any large items of expenditure, or variations.
• Schedules of drawings and capital introduced.
• Details of the herd basis and valuations.n