Originally Posted by
emearg
Some people on this site are long term investors and tend to hold a share once bought. Others buy and sell actively and are traders.
People compare the results obtained like they are comparing apples with apples.
The one thing none of the traders mention is that they are liable to pay tax on their gains. Liable is the key word here. If they don't declare the income then they won't pay it. But if the IRD look at their earnings then they will end up paying it plus plenty more in penalties.
Remember, the buyers intention is what matters to the IRD, not how long you hold a share. If you bought a share with the intention of trading it, then even if you hold it for five years the IRD expects tax to be paid on any gain.
It would be good to see more accurate comparisions being made by the participants of these forums.