Property trading catches taxman’s attention

Posted by Dynon on April 29, 2015

Tax.jpgHigh levels of property trading activity in Auckland have led to calls within government for this year’s budget to provide greater resourcing for the IRD to investigate property deals.

According to a recent New Zealand Herald report, Finance Minister Bill English says that there has been discussion about whether the IRD could be doing more to enforce current laws around property speculation.

There are already laws and taxes in place for people purchasing property in New Zealand as an investment, but the issue relates to the ability of the IRD to effectively enforce these.

Mr English’s comments appear to suggest that much speculative property trading has flown under the radar for some time. A better-resourced IRD, however, could see this change. More property investors will likely end up having to pay their dues to the benefit of the government’s coffers.

The Minister confirmed that recent elections had reflected little support for a capital gains tax. "The lesson, particularly out of the last election campaign,” he was quoted as saying, “is that the public do need to support changes in taxation for housing because it is for by far the majority of New Zealanders their main asset."

On 21 May, Mr English will deliver the National-led Government’s seventh Budget.

[Above Image: Tax Money Bag by 401(K) 2012 ( user)].