Tax remission granted to cattle farmers hit by bovine tuberculosis outbreak forced-slaughter compensation

Plain-language summary · AI-assisted · not legal advice

Farmers in Alberta, Saskatchewan, and British Columbia who had livestock forcibly destroyed due to bovine tuberculosis outbreaks and received compensation under federal animal health rules were allowed to defer recognizing that compensation as income. This order remits (cancels) federal income tax, interest, and penalties for those farmers to the extent their actual tax bill exceeded what they would have owed if the compensation income had been spread across subsequent tax years using a specific formula (roughly 83%, 11%, and 6% across three years). Alberta and Saskatchewan farmers affected by the 2016–2017 outbreak are covered for the 2017–2020 tax years; British Columbia farmers affected by the 2019 outbreak are covered for the 2019–2022 tax years. Eligible farmers who paid tax on lump-sum compensation income may be entitled to a refund of the difference. Affected farmers should review their returns for the relevant years and consult a tax professional to determine whether they qualify and whether amended filings are needed.

Who this affects: cattle farmers in Alberta and Saskatchewan affected by 2016–2017 bovine tuberculosis outbreak · cattle farmers in British Columbia affected by 2019 bovine tuberculosis outbreak · farming business operators who received forced-slaughter compensation payments