Landlords say low taxes cap rents
Nearly $500 million in tax was paid on rental incomes in the financial year ended March 2013, figures obtained under the Official Information Act show.
The New Zealand Property Investors Federation (NZPIF) requested the information in response to the Tax Working Group’s finding in 2009 that rental property owners took money out of the tax system rather than paying into it.
It found that rental property owners last year collected about $1.5 billion in revenue, of which about $500m went to Inland Revenue in tax.
The federation said “only Inland Revenue data from 2008 was used to back their claim” – a year in which high interest rates saw most property owners lose money.
The federation said that based on the Tax Working Group’s claims, the Government withdrew the ability of rental property owners to claim depreciation.
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