Luke Chemies

It is likely.

It could well be.

You may.

So the IID website says that you're likely in business if you intend to make a profit.

Does that sound familiar?

When we have an intention in New Zealand with just about anything, if you intend to make a profit, that's an underlying tax rule too.

that that's then held on what we call revenue account, and therefore there is tax to pay.

Now, you could argue, well, I brought some Heartland Bank shares.

I intended to make a profit from them.

Unfortunately, they've gone down, so I haven't.

But therefore, if I did make a profit, then I would need to pay tax on that.

But we don't have a capital gains tax, and most people would say, no, I didn't buy a

those shares, those Heartland shares to make a profit.

I brought them to get a dividend.

Therefore, if I do make a profit from selling them, I'm not paying the tax on it.

And this is similar to a number of the shares that you would have purchased via Sharesies or whatever you use.

And you may have made a capital gain on those and the IRD aren't saying, hey, we saw that your

caterpillar shares have doubled in value and you sold them, you need to pay up and give us some money.

So the intention in New Zealand, this is a tangent, is often quite important.

Now, where I have a gripe with that rule or go, well, you know what's been cooked over 40 years in this country,