IRD planning crackdown on property investors

There is a call for caution over news that Inland Revenue will be cracking down on property investors.

IRD has been given an extra $14.6 million to target property tax evasion, which will mean visits to real estate agents and a look through various files.

Euon Murrell of the Wellington branch of the Real Estate Institute will be investigating how the announcement relates to privacy laws. But he says if IRD has the power to move in and take records there is nothing local agents can do.

Mr Murrell says there is also confusion surrounding the definition of a property investor, as some buy an extra rental property, while others make a living off property trading.

- NEWSTALK ZB