Part d

In January 2007, David purchased a block of land. In December 2007, David married Isabella and in June 2011, David sold the land to Isa Limited of which Isabella is a 50% shareholder since May 2011. Isa Limited carried out a subdivision of the land into six sections in February 2019 and sold the sections in August 2019. Is Isa Limited taxable for the sale of the subdivided sections? Discuss with reference to the relevant sections in the Income Tax Act 2007.

Part c

Gill is a land dealer. Gill owns 100% of a company that buys residential rental investment properties. In March 2011 the company buys a rental property as an investment and to rent. In December 2020, the company sells the investment property and makes a gain on the sale. With reference to the relevant provision(s) in the Income Tax Act 2007, explain whether the gain on the sale of the investment property is taxable income for the company.

Part a

Joshua is a New Zealand citizen and in 2016 he went to India to work there. He has never returned to New Zealand since he left. Two years ago he purchased a residential rental property in Hillcrest Hamilton New Zealand for $930,000. In July 2022, Joshua signed a contract to sell the property for $1,200,000. Joshua has a mortgage of $430,000 on the property and outstanding rates of $2,800. The purchaser paid Joshua a deposit of $100,000 before settlement. Determine the Resident Land Withholding Tax (RLWT) payable by Joshua. Show all workings.