Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

February 01, 2007 16:10 ET

Canada's New Government Extends Federal Tax Deferral to Help More Farmers in British Columbia

OTTAWA, ONTARIO--(CCNMatthews - Feb. 1, 2007) - The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board and Regional Minister for British Columbia, today announced that Canada's New Government will extend federal tax deferrals for additional livestock producers in Northern British Columbia.

"In addition to helping producers in the Regional Districts of Bulkley-Nechako, Fraser-Fort George, Kitimat-Stikine and Peace River, we are happy to announce that we will provide assistance to producers in the Regional District of Cariboo through our federal tax deferral program," said Minister Strahl. "This program will assist livestock owners who were affected by drought, and who were forced to sell all or part of their herd. Canada's New Government is committed to helping producers overcome the challenges of the past several years."

Owners of breeding livestock in the designated rural municipalities who were forced to sell all or part of their herd this year due to drought conditions will be eligible for a one-year tax deferral on 2006 income from these sales.

To defer income, the breeding herd must have been reduced by at least 15 per cent. Thirty per cent of income from net sales can be deferred if the breeding 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.

The deferral allows eligible producers in designated areas to defer income tax on the sale of breeding livestock for one year to help replenish breeding stock in the following year. In the case of consecutive years of drought designation, producers may defer sales income to the first year in which the area is no longer designated.

Eligible producers will be able to request this deferral when filing their 2006 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.

Contact Information

  • Agriculture and Agri-Food Canada, Ottawa, Ontario
    Media Relations
    613-759-7972 or 1-866-345-7972
    or
    Minister Strahl's office
    Jeff Howard
    Press Secretary
    613-759-1059
    or
    Agriculture and Agri-Food Canada, Regina, Saskatchewan
    Trevor Hadwen
    306-780-8405