Articles by Matthew Gilligan
Labour intend to ring fence property losses to future property income. This will send thousands of investors broke fast. Take investors tax refunds away, property values crash. This is well documented overseas. Sweden property values dropped 35% when they ring fenced losses and the following govt reversed the policy, with values immediately there after recovering.
Accountants would get a mountain of pre change planning work and we would have years of work to do. While lots of New Zealanders will go broke with ring fenced losses and inolvency revenue will grow to. I'm not going to sit by and have to charge my clients for work that is going to make them go broke. Labour are you thinking this through?
I would not want to be a banker though with losses ring fenced...will make an already difficult environment treacherous and property investors would want to be selling sooner than later.
This really is playing with fire by labour with little short term upside, given the global backdrop of deleveraging, and capital growth prospects in NZ with higher interest rates on their way, - next year or sooner, and potential for major problems globally as Asia and Aussie come off the boil and Europe and the USA choke on their indebtedness. This must put pressure on interbank lending rates within 2 years, especially if we see sovereign default in the PIIGS or USA.
The massive bureaucracy they built and squandered our money on, the buy back of kiwi rail, now CGT, to name but a few blunders.
Back on Tax
If you want instant cash flow targeted on property - it's simple. Introduce stamp duty like the rest of the world. Instant 3- 5% tax on the turnover in the property sector dampening speculation and raising major govt revenue, without the complexity of CGT.
If you are worried about any of these issues I have mentioned email or come and see me.
It is my pleasure to write a testimonial with regards to the nomination of the professional trustee team at Gilligan Rowe and Associates, as a finalist for New Zealand Corporate Trustee of the year. They have acted as a professional trustee for my trust for many year now. I have been thoroughly impressed by their level of knowledge, professionalism, honesty and integrity in all my dealings with them. In addition, through their regular client seminars that I have attended, I have been very impress by the thoughtful critiques of cases and changes in the direction of trust law, and their possible impact on me. I can recommend them without hesitation. Sincerely - BV
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.Learn More