Hi folks,
Today’s (27/1) NZ Herald has an article on a tax department crackdown on non payment of tax after the sale of property. It says:
“The tax office is stepping up a campaign against property speculators who are not paying tax in the booming Auckland real estate market….
Most landlords would pay tax on the sale of their properties because they use accountants and they are aware that the penalties of not paying are huge.Mr King warned of the penalties, citing a 150 per cent increase in a tax bill if a property investor was caught deliberately evading tax, a 100 per cent fee for an abusive tax position, 40 per cent for gross carelessness, 20 per cent for unacceptable interpretation of tax rules and 20 per cent if a landlord did not take reasonable care with tax.
* People with queries about tax should consult a tax adviser or phone Inland Revenue on 0800-227774
Tax rules
New Zealanders pay no tax on the sale of their private homes, but they are liable to pay tax in some cases on investment properties.
If you invest in property for the long term and your principal income is rental money, there is no tax on the amount you get when you sell your rental property.
But if you invest in property with the main aim of selling that place for a profit, any money you make is taxable.”
You can read the whole article at http://www.nzherald.co.nz
I thought this may be useful info for someone…. [blink]
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