Additional information disclosure requirements came into effect on the 1^st of October 2015 regarding the transfer of land/buildings and property investment as amendments to the Tax Administration Act and Land Transfer Act.

These changes require additional information disclosure to Land Information New Zealand (LINZ) upon the transfer of land and buildings, other than that of your main home that you reside in. Most commonly this will relate to anybody selling their rental properties.

The additional information gathered by LINZ will then be passed onto the Inland Revenue (IRD) which will enable the IRD to access this information on a real time basis.

The purpose behind the changes, is to make it easier for the IRD to ensure compliance with the new tax rules around disposing of property within the first two years of ownership.

The additional information required to be disclosed upon sale of properties are:

• Bank Account Number (If residing offshore, you need to setup a bank account in order to obtain an IRD number);
• IRD Number or tax identification number.

A Land Transfer Tax Statement will also need to be completed and provided to LINZ as part of the transfer documentation (usually complete with your lawyer).

For your convenience, you will find the statement by clicking on this link - Land Transfer Tax Statement.

Although we have provided a summary of changes which have taken effect on the 1^st of October 2015, there are still a number of complexities as a result of the amendments to both the acts outlined above.

If you have any questions please feel free to get in contact with the All Accounted For team, whom can talk you through your specific scenario.

Written by Blake Chamberlain