Property tax crackdown nets $25 million extra - report

A crackdown on property tax evaders has pulled in an extra $25 million in unpaid taxes.

Following government directive a 40-strong Inland Revenue investigation team identified $10 million in unpaid taxes for the first two quarters of this financial year, the Dominion Post reported.

This came on top of $15 million identified by the investigation team for the year ended June 2008.

While New Zealand does not have a capital gains tax, property sales are taxable if one of the intentions when buying a house or vacant land is to sell it for a profit.

Routine property tax audits netted a further $111 million in unpaid taxes in 2008 and $43 million so far this financial year.

More than 5027 property audits have been done and at least five prosecutions have taken place.

More than 230 property investors have come forward and made voluntary disclosures.

But Inland Revenue assurance manager Richard Philp told the newspaper "a range of third parties" were also being used to help identify those buying and selling properties whose profits "may not have been returned as income".

Real estate agents are understood to have been asked to hand over sales transactions in some instances.

- NZPA