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IRD has released to the Weekend Herald a table showing how it pulled in more than $258 million from tax "discrepancies" in the past five years and $63.3 million between June last year and March this year.
Many more millions in discrepancies are expected before the June 30 financial year is up.
The team has exceeded its base $45 million annual tax target in each of the past five years, an IRD spokeswoman said.
Andrew King, the NZ Property Investors Federation's executive officer, said landlords were well aware of their tax obligations and paid their share but was disdainful of tax cheats.
"The fact is if anyone buys a property in New Zealand with the intention of selling it for a profit, then any profit they make is taxed," King said.
But Finance Minister Bill English has hinted at beefing up IRD's property investigation powers when the Budget is presented to Parliament on May 21 and that might mean strengthening the team, or taking other measures to ensure the tax net captures all landlords and property flippers.
IRD did not specify whether its extra $258 million came from landlords avoiding paying tax on rental income or from property flippers not paying tax on profits, but the IRD spokeswoman who released the data said the property compliance team operated all around New Zealand and the amount it was earning was rising steeply.
"[The] property compliance programme is a key part of our compliance focus on property transactions.