Malcolm reports that Greenlion have recently had communication from the IRD regarding the new Brightline rules, confirming that moving forward, the IRD may request further information relating to property transactions.
As he was given to understand, the IRD will now start issuing Brightline letters to customers and/or Tax Agents (Greenlion being yours) via the myIR portal, as they become aware of potential Brightline transactions, which they pick up from Land Transfers. These will usually be sent out by the IRD within a month of the transaction being registered, to give taxpayers a heads-up of their possible tax obligations.
Malcolm explains, “They are yet to complete a couple of catch-up rounds regarding property sales that have taken place since November 2020, do not be surprised if they contact you if you have been involved in a residential property sale”.
Finally, a gentle reminder from Greenlion, if the IRD do request you to provide information, do contact them before providing them anything.
Also with this in mind, Greenlion suggest that if you’re undertaking property transactions, or plan to, Audit Shield Tax Audit Insurance may be of benefit to you to ensure you have cover for their assistances with any queries or audits by the IRD.
Should you have any queries on whether you have cover, or wish to discuss this further, please feel free to contact Greenlion, or call Megan directly to discuss.
With this in mind, please take a moment to find out more about business advisory services and accounting firms Auckland by visiting the website at https://www.greenlion.co.nz .
