By KIRSTEN LEATHERDALE, of the Weyburn Review
Weyburn accountants are predicting a rocky road for farmers when the time comes to fill out their Agricultural Income Disaster Assistance (AIDA) form.
The seven-page form, now available on the Internet at the Agriculture and Agri-Food Canada web site, asks for financial information that isn't normally on a regular tax and NISA return.
"It's going to be extremely difficult for farmers to put together all those numbers," said accountant Doug Court of Court Laidlaw Consulting Inc.
The numbers are fairly complicated. Farmers need to provide a break down of miscellaneous income and expense, including details on contract work/rental income, other income, contract work expense, salaries and wages.
A statement of purchased inputs is also required. A farmer's 1998 NISA gross margin will be adjusted up or down if inventory of inputs increased or decreased during 1998. The same applies to inventory of grain or livestock.
A deferred income and receivables statement, and a statement of accounts payable for the 1998 taxation year is required, based on the fact that the 1998 NISA gross margin will be adjusted up or down if deferred income increased or decreased during 1998.
Court has sent a letter to his clients reminding them to bring this information when they do their tax returns. Despite the early warning, he says some farmers may not meet the strict deadline of June 14.
"Late filing certainly is a possibility. If farmers come in to get their tax return done, but don't have the necessary information, we can't get the (AIDA) application done. Then we're into May just like that. If there's a mistake on the application, and (AIDA administration) returns it, it better be right the next time. Because (the farmer is) responsible, if a correction is required, to do the correction and get it back by June 15," Court said.
Accountant Don Hillstead of Hillstead Melanson Accounting and Tax Service agrees the AIDA application process will be a bumpy ride.
"It looks like it's a pretty confusing set of papers that has to be filled out and goes into an awful lot of detail. I don't think people will be very happy when they get the forms," Hillstead said.
With the tight application deadline, Hillstead emphasized the need to fill out the form correctly.
"The unfortunate thing about it is farmers will be starting into seeding soon, and who has time to do all this?" Hillstead asked.
However, there is a possible benefit to the detail required in the form.
"Farmers file (income tax) on a cash basis, which means they often hold back inventory from sale to keep their cash basis income low. For some farmers, their cash inventory remained the same even though the crops were bad because they liquidated their inventory. If you maintained cash level simply because you liquidated your inventory, that's going to be accounted for under this program when you file, which is a good thing," Court explained.
Souris-Moose Mountain MP Roy Bailey says the convoluted form will automatically turn off a number of farmers who don't expect much help from the AIDA package.
"The mood of people right now is this is all they don't need. For the most part, most farmers don't think they're going to get much anyway, so they might not even bother to fill out the form if it's going to be that difficult," he said.
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