Or "Nominee" or "as agent"?

[tisme]

My accountant has indicated that putting "or nominee" can cause some problems with IRD and I should be putting "as agent".
This is for an offer on some properties that I intend to trade should i get them.
can anyone give me some feedback about this

Tisme

[tjthorne]

Hi Tisme,

There are a few problems purchasing property "and/or nominee" if you are buying property for development. I have written an article on it you may find useful at

http://www.thorneaccounting.co.nz/index_files/nomineearticle.htm

Tony

[tisme]

re nominee

hi Tony
thanks I read your article and thats basically what my accountant is saying but he said that the "as agent"will allow me the time to form the appropriate structure....whats your thoughts?

Tisme

[fpl]

Hi Tony,

I’m wondering whether you article is based on Tax Law or decisions made or confirmed by IRD. I’ve seen an IRD GST audit and IRD had no issue with “and/or nominee at all.

[tjthorne]

Hi fpl

My views are based mostly on tax law and partly on the grapevine. I'm not surprised you didn't find any problems with "and'or nominee" in your audit. I'm sure the IRD wouldn't look at the issue 9 times out of 10. I just think that its important, especially when the nominated entity is a trust, to keep all bases covered in case you come across an iRD auditor having a bad day.

Tony