Property taxation

Ominous Echoes of the 1970s

The Government’s response to Auckland’s housing [insert word of choice here] has focussed on the supply side of the issue. Ironically, many property owners may find themselves with a tax headache thanks to one of these key supply initiatives, the Proposed Auckland Unitary Plan, triggering a tax measure introduced to deal with another housing boom forty odd years ago.  

Is the 'bright-line test' is an example of 'enact in haste, repent at leisure'?

“We do not believe that the introduction of a bright-line test for residential land is sound tax policy.”

That was the Chartered Accountants Australia and New Zealand’s (“CAANZ”) opening sentence in their submission to Parliament’s Finance and Expenditure Committee regarding the Taxation (Bright-line Test for Residential Land) Bill (“the Bright-line Bill”). 

The Devil is in the Detail of Budget 2015

The surprise in the Budget of the first increase in real terms to benefits since 1972 came at a cost for savers and travellers and possibly also for the recipients of the benefits package.

The Budget contains no direct tax measures other than the previously announced increase in funding for Inland Revenue’s property compliance programme and the new “bright line” test for property investors. 

Taxing Times Ahead for Property Investors

Auckland Real Estate by

Reserve Bank Deputy Governor Grant Spencer certainly put the capital gains tax cat among the pigeons when he suggested “the Reserve Bank would like to see fresh consideration of possible policy measures to address the tax-preferred status of housing, especially investor related housing”.

Terry's view on IRD chasing property tax avoidance: Radio NZ National

The Finance Minister says the Government is looking at how tax enforcement can be beefed up to snare investors trading in houses.

The IRD has long been chasing property investor tax avoidance around "purpose or intent to sell".  

Today's announcement of additional funding for IRN enforcement. 

Listen to the full interview on Checkpoint [6' 20" length]

The Inland  Revenue  giveth  and  the  Inland  Revenue  taketh:  the  risks of relying  on tax benefits  to invest in property

Matthew Gilligan's forceful argument in support of residential property over renting can be summarised as follows: "The capital growth on houses is not taxed.

Are the opponents of a comprehensive capital gains tax (CGT) really just NIMBYs in another guise?

Capital Gains Tax

At times it’s hard to escape the suspicion that the vociferous opposition to CGT from the likes of the New Zealand Property Investors Federation appears to be more motivated by the self-interest of protecting untaxed capital gains than any concerns about introducing a complex new tax.

Welcome To Hotel New Zealand - Where You Can Checkout But Never Leave

“Welcome to the Hotel California Such a lovely place (Such a lovely place)
Such a lovely face
Plenty of room at the Hotel California
Any time of year (Any time of year)
You can find it here”

Since the start of the year we’ve been hearing lot about whether or not New Zealand is a “Rock Star economy”.

I’m not so sure about that but I do see echoes of one of The Eagles most iconic hits: Hotel California.