IRD shares tax pamphlet

Press, 13 May 1987, Page 44

IRD shares tax pamphlet

Not all profits from the sale of shares may be taxable, according to a leaflet just issued by the Inland Revenue Department. “For example, many people acquire shares both to receive income from dividends and growth in the value of the shares,” Mr John Simcock, Commissioner of Inland Revenue, said. ‘.‘ln these circumstances, where there is not a clear purpose of resale at the time of purchase, any profits on the ultimate sale of the

shares would not be taxed.” The leaflet also explains when losses made in selling shares can be a tax deduction, for example if trading or dealing in shares is a normal part of your business. The leaflet supplements the information given in the Tax Guide with the 1987 IR3 tax return and is designed to assist people in determining their tax position. “This is in keeping with our aim of letting people know their rights and obligations, so that a correct tax return can be

made,” said Mr Simcock. "As part of its over-all compliance activities for 1987, the Department will be carrying out checks on whether taxable profits from share sales have been correctly returned,” Mr Simcock said. “We are advertising the availability of this hew pamphlet, and people can get a copy by mailing us the reply coupon in the advertisements, or simply ask for one at the nearest Inland Revenue Office," Mr Simcock said.