Originally Posted by
GTM 3442
That was in response to your point that "The computer system at IRD can easier do checks and impose CGT as soon as the property changes hands."
If the property does not change hands, there is no transfer registered at LINZ, and thus nothing for the IRD system to "find". In this scenario, there is no need for the property to ever change hands, and thus no tax liability.
There may have been a change in beneficial ownership, but this is not captured by the Title Registration system.
As far as dividends go, there is an interesting scenario in the U.K. At the moment. Small companies wher the owners pay themselves by dividends are not able to access various forms of government support. In the U.K., dividends are taxed at a lower rate than wage or salary income, so there is a tax incentive for the owners to pay themselves by dividends.
Interesting, eh?