Inland Revenue allows offset election

Allied Farmers Ltd
201 Broadway, Stratford, 4332
PO Box 304, Stratford 4352

Phone: 06 765 6199
Web: www.alliedfarmers.co.nz
Email: headoffice@alliedfarmers.co.nz




3 February 2020

INLAND REVENUE ALLOWS LOSS OFFSET ELECTION

Allied Farmers Limited Group (Allied NZX:ALF) is pleased to advise that the
Commissioner of Inland Revenue has now agreed to allow late offset elections for the 2016
to 2018 income years for the NZ Farmers Livestock finance consolidated group*.

On 5 December 2019 ALF disclosed that the Commissioner of Inland Revenue had
declined a request to exercise her discretion to issue amended income tax assessments in
respect of each of the 2016 to 2018 income tax returns
in relation to payments that were
incorrectly classified as subvention payments. The request was to allow a correction of the
position by permitting a late loss offset election.

The request was initially declined and ALF disclosed that, if her decision was to stand, tax
of $1,193,948, plus interest and penalties (late payment and, if applicable, shortfall
penalties) could be payable.

The Commissioner reconsidered her position after undertaking an independent review of
the original decision at ALF’s request.

ALF Chairperson Mark Benseman said “We are delighted with this decision. This means we
now have in excess of $1 million of cash available to invest in new agribusiness
opportunities and continue to execute a strategy of providing a superior service to our food
producing clients”.


Mark Benseman
Chairperson

*NZ Farmers Livestock Limited is a subsidiary of Allied Farmers Limited