"It is good news that Inland Revenue’s strategy to track down property speculators who avoid tax is showing big dividends." says NZ Property Investors’ Federation Executive Officer, Andrew King. "Our members are rental property owners or investors, but many people in New Zealand think we are traders and speculators. The confusion comes from speculators saying they are investors to avoid paying tax on their profits. People then blame investors for not paying their fair share of tax. The IRD are doing a good job to make sure the system works".
IRD looked at property developers speculating in the residential market, particularly in Auckland and Queenstown. They visited 2,500 industry and other interest groups to raise awareness of their tax-related responsibilities, and they monitored 26,000 properties and property-related issues.
Information from Inland Revenue shows that rental property owners paid nearly half a billion dollars in tax on their rental income.
Read the media release from the Minister of Revenue here