National says no to capital gains tax

Hondan

Friday 5 June 2009

A capital gains tax on property investment is definitely not on the Government's agenda, says Housing Minister Phil Heatley.

By Vicki Holder

Responding to a call for debate on theissue by Treasury Secretary John Whitehead this week in a speech to theInstitute of Directors, Heatley said, "Treasury can have their fun.But, as we have said before, we won't be introducing a capital gainstax on property."

Whitehead talked about "significant adjustment and change" so the economy can emerge strongly from the current recession.

He focused on taxation, regulation, the role of the public sector and making New Zealand an attractive investment destination.

"At the risk of being chased down by an angry crowd with pitchforksand flaming torches, yes, this should include consideration of movingthe boundaries to tax more capital gains - for example on investmentproperty - and shifting more of the tax base towards consumption," hesaid.

Capital gains, or property taxes, he said, would encourageinvestment into productive activity. "The time to grab theseopportunities is now."

Whitehead's timing, one week after the budget had been announcedseemed curious. Some have suggested that the Government and Treasurywere trying to rally support for the idea of a capital gains tax butHeatley denied the implication.

"They bring it up once every 12 months or so. The Finance MinisterBill English has gone out today and publicly stated that it's not on."

However, the Alliance Party came out and said that it agrees with"its traditional enemy" Treasury on this one tax issue - "a capitalgains tax on property investments is needed".

Reference: www.landlords.co.nz

Hondan

原帖由 阿海 于 2009-7-6 15:36 发表
There is no capital gains tax, BUT there is income tax.

So if you buy and sell properties regularly (ie trading), then the amount of money you make, IRD will tax you.

Consult your tax accountant ...

You're absolutely right!

阿海

There is no capital gains tax, BUT there is income tax.

So if you buy and sell properties regularly (ie trading), then the amount of money you make, IRD will tax you.

Consult your tax accountant

So there is a "capital gains tax", most people just don't know about it.