GST Compliance in the New Zealand Property Sector. (June 2014)

• Record Type: Journal Article
• Authors: Claus, Iris
• Is Part Of: Fiscal studies. Volume 35:Number 2(2014)
• Page Start: 225
• Page End: 240
• Publication Date: 2014-06
• Subjects: Finance, Public -- Periodicals; Fiscal policy -- Periodicals; Economic policy -- Periodicals; Finance, Public -- Great Britain -- Periodicals; 336.3
• DOI: 10.1111/j.1475-5890.2014.12029.x
• Languages: English
• ISSNs: 0143-5671

Abstract

<abstract abstract-type="main"> <title>Abstract</title> <p>Different schemes used in property transactions raised concern in New Zealand that insufficient goods and services tax (GST) was being paid on the sale of property. To improve tax compliance in the property sector, various measures have been undertaken. Tax auditing of property transactions has been strengthened since 2007 and in 2009 the government issued a discussion document that proposed a legislative solution to some specific GST problems. Moreover, several court cases have ruled against abusive GST schemes. This paper estimates the impact on GST collection and compliance in the property sector following these actions. The findings suggest that GST compliance in the property sector has increased.</p> </abstract>