IRD numbers required for all property transactions

The government has introduced a last minute change to a tax bill, just before it was passed into law in late June, to require all buyers and sellers of land to provide their IRD number. In announcing the change, which was introduced by a supplementary order paper (SOP) to the existing tax bill, Revenue Minister Stuart Nash stated that the change was in response to a recommendation by the Tax Working Group. Since then IRD has stated that it is aware of substantial unpaid tax due to Inland Revenue by property speculators who do not comply with the five year bright-line rules around land sales, and who often claim they have sold their main home, and therefore do not need to provide an IRD number as part of the sales process.

The new rules require all buyers and sellers to provide an IRD number, regardless of whether the sale is of a main home or not.

July 2019 Tax Alert contents

• R&D tax credits - new developments
• New Zealand outlines its proposal for a digital services tax
• Changes to the collection and use of investment income information
• Ring-fencing residential rental property losses
• Snapshot of recent developments