Your favourite tax lawyer and mine, Cactus Kate, has a take (ha!) on the recently announced IRD crackdown on property investors.
I covered this in last week’s NBR (and I’ve been covering the issue for several years now) but on reflection I think the IRD’s announcement last week is actually aimed at giving NZers a more pleasant holiday season.
Life is full of bores (this may sound like a digression but bear with me). There are various types of bore – and I’ll do a Rob Hosking Guide to Bores another day – but one of the most pernicious is the Property Bore.
This is the person who will bend your ear for hours and hours about how much they’re making out of their investments, and how they’re not paying any tax on it.
There seem to be a lot of these in Auckland.
Now, by law, if you are making regular property investments, the IRD can come along and treat the capital gain from those investments as part of your income.
There are some issues around burden of proof on this, but if they find you have been skiting to all and sundry about what you are doing then the game’s pretty much up.
So the timing of this little announcement is, I think, the IRD’s Christmas gift to the nation.
It means any Property Bore, if they are sensible, will simply Shut The **** Up.