Property investors owe $200m in tax

Labour is criticising Inland Revenue, as official figures show property investors owe more than $200 million in tax.

The Inland Revenue Department says the tax is due from 2000 people who have bought and sold six or more properties in the last few years.

Labour's Revenue spokesman Stuart Nash says he cannot believe the IRD does not put more effort into chasing them.

He says the Government needs to resource the department properly.

"I think what we need to do is look at the law around intent when you purchase. If you buy a second home, let's keep the family bach out of this at this point, it has to go on a capital account. So, if you buy that second home, you have to pay tax."

Mr Nash says Labour is not opposed to a capital gains tax but he is not convinced it is what is needed to fix the problem.

- NEWSTALK ZB