It looks increasingly like the profit of nearly $6 million, made on the forced sale of a property on Sandspit Road, will remain in the pockets of the overseas investors who bought it illegally.
The 80ha property at 185 Sandspit Road, just out of Warkworth, known as the chestnut farm, was bought by the Hong Kong-based investors in 2012 for $4.48 million, without Overseas Investment Office (OIO) consent.
Although they applied for the consent retrospectively, it was refused and they were forced to sell. The property changed hands earlier this year for $10.1 million.
When asked last week whether the vendors would pay tax on the profit or whether or not a penalty would be imposed, the OIO repeated what it has been saying since June, “The OIO needs to discuss with the overseas person when considering what action to take in relation to the property”.
The maximum penalty that can be imposed is $300,000.