Tax Relief for Ranchers Affected by Bovine TB

Bulletin

The Government has announced further tax relief for taxpayers who receive compensation under the Health of Animals Act due to the 2016 and 2017 bovine tuberculosis (TB) outbreak in Alberta and Saskatchewan that forced the destruction of livestock.

Current income tax rules provide a tax deferral that allows a taxpayer to defer paying tax on the amount received in a tax year as compensation for the forced destruction of livestock from the current tax year to the following tax year.

The objective of the deferral is to allow farmers who would otherwise realize a large income inclusion in the year they receive compensation to have the option to defer the income inclusion to the following year, when that income inclusion may be partially, or fully, offset by the cost of acquiring new livestock.

 

For more details, please click here.