CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. New Zealand To Better Track Taxpayers' Property Transactions

New Zealand To Better Track Taxpayers' Property Transactions

by Mary Swire, Tax-News.com, Hong Kong

21 June 2019


New Zealand's Inland Revenue has announced that those who buy and sell property will be required to provide their IRD number on land transfer documentation, to improve the agency's ability to enforce the tax rules on property speculation.

Revenue Minister Stuart Nash said: "Most people already provide their IRD number to Land Information NZ (LINZ) when buying and selling property, but there are some exemptions which are open to manipulation."

"Up to one-third of land transfers are made without a record of the IRD number of the buyer or seller."

"Inland Revenue needs a complete picture of property transactions to determine if tax rules are being manipulated. The requirement for nearly all land transfers to include an IRD number is a small change but improves the overall integrity of the system."

"If a home owner regularly buys and sells their properties in a short time frame it suggests they are engaged in property speculation and are flipping properties with the intention of creating income."

"When the previous government introduced the bright line test in 2015, it made it clear that owner-occupiers with a regular pattern of buying and selling residential properties had to comply with the bright line rule in certain circumstances."

"If an owner-occupier buys and sells properties twice or more in two years, under existing law they are generally considered to be trying to manipulate the bright line test."

"The requirement to provide an IRD number on nearly all land transfers makes the rules easier to understand for everyone. It removes uncertainty around what information people need to provide when buying or selling a property. Capturing the relevant tax information for property sales will also help us work with jurisdictions in other countries to combat global tax evasion," said Nash.

A Supplementary Order Paper was tabled on June 18 to make the change to the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Bill currently before Parliament. It will apply from January 1, 2020.

TAGS: Offshore | tax | speculation | law | New Zealand | Tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »