The Inland Revenue Department is warning people attempting to stag the Contact Energy float that they may be liable for capital gains tax on any profits.
"Where a person purchases shares as part of a business or for the purpose of sale or disposition or as part of an undertaking or scheme to make a profit then any profits from the transaction will be liable to tax," IRD says.
"Inland Revenue will include the share floats of major companies and the tax risks associated with profit takers on shares as part of its audit programme."
Indexation idiocy Sovereign Funds Management argues the time is right to embrace active stock selection over its rival passive.
The booming United States sharemarket is being fuelled by strong rises in a handful of stocks as opposed to an across the board rise in share values.
It says the S&P 500 index rose 26.7per cent in 1998, though the average stock listed on the New York exchange fell 4.7 per cent. Half the S&P gain was attributable to just 14 stocks, portfolio analyst Justin Edgar says.
Edgar says people putting money into passive funds are buying into stocks trading on earnings multiples not previously seen. Active managers on the other hand can invest in value stocks which have room to rise.
Confidence returning in Auckland Confidence in Auckland's commercial property sector continues to improve, according to the NZ Institute of Valuers quarterly report.
The report, conducted by Massey University's Finance, Banking and Property Department, surveys a panel of property experts on their views for the next six months.
In the latest survey 59 per cent of respondents are expecting a further improvement over the next six months.
They are predicting improvements in all four sectors, namely office, industrial, retail and apartments.
The Inland Revenue Department is warning people attempting to stag the Contact Energy float that they may be liable for capital gains tax on any profits.