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World Cup rental homes on IRD's radar
MICHELLE DUFF Last updated 05:00 05/07/2011
Inland Revenue will trawl property rental websites as part of a push to catch homeowners who do not pay tax on houses rented out during the Rugby World Cup.
It is understood a major aspect of the IRD's annual compliance document – a blueprint of the year's investigation targets set for release next month – will be on catching people who have not declared income from properties rented out during the cup.
Though official numbers of people renting out homes are not kept, national and international websites show hundreds of listings for holiday home accommodation around New Zealand.
Prices in Wellington range from $100 to $1000 a night.
Chris Leatham, partner at accounting firm PWC, said the penalties for not declaring tax on rental income were harsh, and it was not worth the risk.
"It's pretty easy for Inland Revenue to find out if you're renting your home out. Don't assume you can fall under the radar. IRD can be pretty aggressive when they get their teeth into you in these investigations, so if people are ignoring them then they do it at their peril."
Sue Robinson, managing director of 80minutegame.com, has about 40 Wellington properties and 200 Auckland homes on her books.
MICHELLE DUFF Last updated 05:00 05/07/2011
Inland Revenue will trawl property rental websites as part of a push to catch homeowners who do not pay tax on houses rented out during the Rugby World Cup.
It is understood a major aspect of the IRD's annual compliance document – a blueprint of the year's investigation targets set for release next month – will be on catching people who have not declared income from properties rented out during the cup.
Though official numbers of people renting out homes are not kept, national and international websites show hundreds of listings for holiday home accommodation around New Zealand.
Prices in Wellington range from $100 to $1000 a night.
Chris Leatham, partner at accounting firm PWC, said the penalties for not declaring tax on rental income were harsh, and it was not worth the risk.
"It's pretty easy for Inland Revenue to find out if you're renting your home out. Don't assume you can fall under the radar. IRD can be pretty aggressive when they get their teeth into you in these investigations, so if people are ignoring them then they do it at their peril."
Sue Robinson, managing director of 80minutegame.com, has about 40 Wellington properties and 200 Auckland homes on her books.
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