Repercussions of drought conditions last year continue to be felt by livestock producers in some parts of Canada, and the federal government today said it plans to expand the designated regions eligible for tax deferral.
An initial list was issued in November for Alberta, Ontario and Quebec. The new list includes areas of British Columbia, additional ones in Alberta, Ontario and Quebec and now several areas of Nova Scotia.
Livestock producers in the designated areas who had feed shortages last year can defer some of their 2016 proceeds from sale of breeding stock until next year.
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“The cost of replacing the animals in the next year offsets the deferred income, thereby reducing the tax burden associated with the original sale,” said a government news release issued March 28.
“Producers in those designated regions can request the livestock tax deferral provision be applied when filing their 2016 income tax returns.”
Federal Agriculture Minister Lawrence MacAulay said the deferral is designed to help livestock producers manage the impacts of drought and focus on rebuilding their herds this year.
Areas added to the list as of today include the Kitimat and Stikine regions of B.C., the County of Newell, Mackenzie County and the City of Calgary in Alberta, 26 additional regions in Ontario, nine in Nova Scotia and one in Quebec.
A full list is available at www.agr.gc.ca/eng/programs-and-services/list-of-programs-and-services/drought-watch/livestock-tax-deferral-provision/2016-initial-and-second-list-of-designated-municipalities/?id=1478291103879.
