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11 sales in 12 years deemed taxable

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  • 11 sales in 12 years deemed taxable

    Over a 12 year period, a Trust bought and sold 11 properties. These have been held to be taxable for both income tax and GST, even though they were lived in as personal homes.
    IRD has obviously looked at the pattern!
    http://www.talktax.co.nz/index.php/2...e-tax-and-gst/
    Book a free chat here
    Ross Barnett - Property Accountant

  • #2
    Interesting. Certainly looks like tax evasion on the face of it. I see that the solicitor / trustee Ms X is jointly and severally liable for most of the shortfall.

    Comment


    • #3
      Yes, never be a trustee!

      Also most were empty sections that they build a house on. The pattern does seem quite bad and generally after 2-3 quickly done, you would start to look carefully at the tax position.

      Ross
      Book a free chat here
      Ross Barnett - Property Accountant

      Comment


      • #4
        seems reasonable and if advertised widely should have a lot of people quaking in their boots.

        Comment


        • #5
          What Were They Not Thinking?

          It's almost impossible to have any sympathy
          for those involved, given the details given in
          the TRA findings.

          I don't imagine too many Trust/ees would be
          quaking in their boots, unless they were ill-
          informed and witless in any trading activities.
          Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

          Comment


          • #6
            Reading through the original case notes on the TRA website, the excuses they gave for selling are quite comical. Their reasons for sale range from allergies to a house, a creepy guy from next door, glare from traffic lights, and finally being sexually assaulted as a child.

            Comment


            • #7
              Originally posted by AMR View Post
              , and finally being sexually assaulted as a child.
              Really? How does the impact of that vary from one house to the other - especially as they brought the section and built the house?

              Comment


              • #8
                I know a few people who have done this sort of thing. The way they see it they're just "trying to get ahead". A house a year is a bit on the nose though!
                You can find me at: Energise Web Design

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                • #9
                  People are just 'trying to get ahead' doing cash jobs also ...

                  Comment


                  • #10
                    Originally posted by Wayne View Post
                    Really? How does the impact of that vary from one house to the other - especially as they brought the section and built the house?
                    The argument was that being sexually assaulted as a child made him unable to confront neighbours about noise issues etc, so he had to sell instead of talking to the neighbours.

                    Comment


                    • #11
                      Originally posted by Wayne View Post
                      People are just 'trying to get ahead' doing cash jobs also ...
                      Oh sure... it irritates me but I also see where they're coming from since they are actually living in it.
                      You can find me at: Energise Web Design

                      Comment


                      • #12
                        Originally posted by AMR View Post
                        The argument was that being sexually assaulted as a child made him unable to confront neighbours about noise issues etc, so he had to sell instead of talking to the neighbours.
                        I guess it's hard to come up with 11 excuses huh lol.

                        Comment


                        • #13
                          I told the IRD My heritage as a gypsy means i move around alot, denying me this right is xenophobia and i will take the matter further. Hehe

                          Comment


                          • #14
                            What counts is the intention at time of purchase.

                            If you intend to resell at a profit, the fact that you lived in it is surely irrelevant?
                            Like a LMVD driving around for a while in a car he bought as sales stock.

                            Comment


                            • #15
                              Originally posted by flyernzl View Post
                              What counts is the intention at time of purchase.

                              If you intend to resell at a profit, the fact that you lived in it is surely irrelevant?
                              Like a LMVD driving around for a while in a car he bought as sales stock.
                              What counts is your willingness, ability and financial resources to dispute any IRD decision in court!
                              You can find me at: Energise Web Design

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