Confess early, property speculators advised
Wheeler-dealer Aucklanders who bought even one house or flat with the intention of making a speculative gain must pay tax on their profits when they sell, according to a financial expert.
Wednesday, February 23rd 2005, 4:28AM
by The Landlord
PricewaterhouseCoopers tax partner John Shewan warned Aucklanders to confess early rather than waiting for Inland Revenue to find them. He said he had no sympathy for people who flouted tax laws.He warned speculators who feared a tax bill against phoning Inland Revenue directly to discuss their tax position, saying this in itself could spark an investigation.
Instead, they should go to a tax consultant to find out if they had a tax exposure.
But Senior Auckland department official Richard Philp said people could phone anonymously to talk about the general rules and would be helped without having to give their name.
More specific information could be provided, though, if they gave their IRD number.
Mr Shewan was commenting on the Inland Revenue Department's announcement yesterday that it was increasing resources to hunt down Auckland speculators and developers who had kept their profits a secret.
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