GLENHARROW HOLDINGS LIMITED V THE COMMISSIONER OF INLAND REVENUE SC 59/2007
Leave to appeal was granted to determine whether s 76 of the GST Act permits the Commissioner to treat a non‑sham transaction as void and adjust the refundable GST and, if so, the correct method of quantifying that adjustment.
Source-derived case information.
- Citation
- SC 59/2007
- Parties
- Appellant: Glenharrow Holdings Limited; Respondent: The Commissioner of Inland Revenue
- Court
- Supreme Court
- Jurisdiction
- New Zealand
- Judgment Date
- 4 October 2007
- Procedural Posture
- Tax Appeal / Leave to Appeal Granted
- Outcome
- Leave to appeal granted
- Legal Topics
- Section 76 Goods and Services Tax Act 1985, Voidness of Transactions, Sham Doctrine, GST Refund Adjustments, Leave to Appeal
Source-derived case record
Summary, issues, holding and outcome
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Parties
Glenharrow Holdings Limited
Appellant
The Commissioner of Inland Revenue
Respondent
Procedural Posture
Tax Appeal / Leave to Appeal Granted
Legal Issues
- 1 Whether the Commissioner under s 76 of the Goods and Services Tax Act 1985 could treat the transaction as void and adjust the amount of GST refundable notwithstanding the transaction was found not to be a sham
- 2 If the Commissioner could, whether the Court of Appeal correctly determined the amount of the adjustment
Ratio Decidendi
Leave to appeal was granted to determine whether s 76 of the GST Act permits the Commissioner to treat a non‑sham transaction as void and adjust the refundable GST and, if so, the correct method of quantifying that adjustment.
Court Disposition
Leave to appeal granted
Orders
- Leave to appeal granted
- Approved grounds of appeal: (1) Whether the Commissioner was entitled under s 76 to treat the transaction as void and adjust the refundable GST notwithstanding the transaction was not a sham; (2) If so, whether the Court of Appeal correctly determined the amount of the adjustment
Full Case Text
Judgment text and source record
1 paragraphs
GLENHARROW HOLDINGS LIMITED V THE COMMISSIONER OF INLAND REVENUE SC 59/2007 4 October 2007IN THE SUPREME COURT OF NEW ZEALAND SC 59/2007 [2007] NZSC 80BETWEEN GLENHARROW HOLDINGS LIMITED Appellant AND THE COMMISSIONER OF INLAND REVENUE Respondent Court: Blanchard, McGrath and Anderson JJ Counsel: G J Harley for Appellant J C Pike and J H Coleman for Crown Judgment: 4 October 2007JUDGMENT OF THE COURT A Leave to appeal is granted. B The approved grounds are: 1. Having regard to the finding (not challenged in the Court of Appeal) that the transaction under which the applicant acquired the mining licence was not a sham, whether the Commissioner was nevertheless entitled under s 76 of the Goods and Services Tax Act 1985 (as it stood at the time of the transaction) to treat the transaction as void and to adjust the amount of tax refundable to the applicant. 2. If so, whether the Court of Appeal correctly determined the amount of the adjustment.Solicitors: Mairehau Law Centre, Christchurch for Appellant Crown Law Office, Wellington