Tax department to investigate property speculation
Monday 29 March 2004
It was only a matter of time before Inland Revenue Department turned its attentions to property speculators in Queenstown and Wanaka, the Institute of Chartered Accountants New Zealand (Icanz) says.
By The Landlord
"The rapid turnover in property, the huge buying and selling in Queenstown and Wanaka, has been well-documented," Icanz tax director Annabel Young said.Where there was big property interest in buying and selling, it followed that IRD would want to tax the gains people were making, she said.
Even though the law was complex, everyone involved should be making themselves familiar with CD1 of the Income Tax Act, she said.
"If they are speculating they must seek the advice of a professional, a chartered accountant. It will save them in the end."
The move by IRD to bring four investigative audit teams into the region for an indefinite period of time meant they were there on serious business, Ms Young said.
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