While New Zealand doesn't have a comprehensive capital gains tax, the sale of land is one area which has specific capital gains tax laws.
Most people are aware of the "bright-line test" which will tax properties purchased and sold within certain periods of time. However, there is an entire body of tax law which was enacted to tax a wide range of other transactions involving the sale of land. GST on the sale of properties is also a highly complicated area of law, and contribute to many professional indemnity insurance claims for conveyancing lawyers, hence the need for specialist tax advice.
IRD has a "property compliance team" which is dedicated to investigating whether the correct tax (both GST and income tax) has been paid in relation to land and property transactions. With the new requirement to provide an IRD number at settlement, IRD knows about every property transaction in New Zealand.
These are all very common transactions, but if not dealt with correctly, can have very nasty tax consequences. Our expert team is able to assist you with specialist tax advice in relation to all aspects relating to the sale of land. Bevan has extensive experience working with large corporate property groups, developers, construction companies, property investors and individuals to ensure this complex area of tax law is dealt with correctly and tax efficiently.