New Property Tax a feeble roadblock for property speculators

avatr Mana News editor Joe Trinder


The new tax laws being proposed by the National government are not going to prevent foreign property speculation they are a feeble attempt designed to appease the public that the government has taken action. These New Tax laws are not a deterrent just a few minor roadblocks to foreign venture capitalists.

All non-residents must provide an IRD number means nothing, because you do not have to be a New Zealand citizen or resident to have an IRD number. The entire human population of Earth can apply for a New Zealand IRD number.

All-non residents must have a New Zealand bank account -so they can put $5 in the account while buying $5 million worth of real estate on foreign capital.

All non-resident property buyers must provide identification -This weak expectation seems voluntary from Inland revenue how does Inland revenue identify New Zealand residents from non-resident  if presenting identification is not compulsory for all buyers.

The bright line test is the bare minimum  period of two years. It’s essential for property speculators to spend a minimum period of two years in the market to get maximum profits, while continuing to destablise the New Zealand economy.

These tax measures are not a deterrent  they are minor roadblocks for non-resident property speculators nothing in the fact sheets is designed to segregate non resident property speculators from Kiwi families trying to buy the family home.