Other Investment Information
Tax Losses
For most years during the term of your forestry investment you will be entitled to a share of the investment's tax losses.
In early May each year, we send all investors a letter detailing their tax losses for the tax year ended 31 March. In addition, the Annual Report contains a schedule of each investor's tax loss for that investment. Non-Residents should check here for tax loss and other tax issues affecting them.
The process for claiming tax losses differs for company based investments and partnership based investments.
Company Based Investments
You claim the loss using the section for 'qualifying company losses' found at question 24 in the standard IR3 tax return (or question 18 of an IR6 tax return for Trusts).
New investors, if you are not using an IR3 (or IR6) return, you may wish to contact the IRD (or your Accountant) and arrange for the change, so that you receive the correct form.
If however your investment has a 30 September balance date you have two options for claiming the tax losses.
Option 1: Claiming the tax loss in your following years tax return. This would mean the loss available from your Forest investment for the current year ended 30 September would be included in your tax return for 31 March next year.
Option 2: Claiming the tax loss in the year ending 30 September for the tax year ending 31 March of the same calendar year e.g. the tax loss for the year ended 30 September 2007 would be included in your tax return for the tax year ending 31 March 2007. This option is only practical if you have already advised the IRD that you are going to file your tax return late (usually filed by 7 July) or an agent files your return on your behalf.
You can find information relating to individual investments here.
Partnership Based Investments
You claim the loss in question 23 in the standard IR3 tax return.
Partnership based investments may also have interest earned and resident withholding tax to declare. This should be recorded in question 13B in the standard IR3 tax return.
You can find information relating to individual investments here.