11-05-2025
IRD targets outstanding student loans in property investment crackdown
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Inland Revenue is cracking down on property investors who aren't meeting tax obligations, including those with outstanding student loans.
IRD estimates there was about $153 million in
unpaid taxes in the property sector in the first nine months of this financial year
, about the same as the amount found in the whole of the year before, including undeclared tax gains on properties subject to the bright line test, as well as upaid GST on sales.
IRD has more resources to chase unpaid taxes with proactive use of other information sources such as land transfer information.
Property Investment Federation's advocacy and communications manager Matt Ball said there could be some investors unaware of their obligations, but most were well informed about tax policies where property investments were concerned.
"Another example that they've shared with us is around around student loan obligations, people who have student loan obligations but who also have investment properties here in New Zealand," Ball said, adding IRD's investigations included property investors living overseas.
"IRD are even tracking those people down and making sure they pay their student loans and their taxes in relation to an investment property."
IRD had been running a campaign to help people understand their obligations under the bright-line rules resulting in about $3.7 million in voluntary disclosures.
