14 Nov 2014
BEACHAM v THE COMMISSIONER OF INLAND REVENUE [2014] NZHC 2839
- Citation
- [2014] NZHC 2839
- Court
- High Court
The Commissioner had jurisdiction to reconstruct the appellants' 2007 income under Part G because the tax avoidance arrangement produced a transfer of value equivalent to a dividend and therefore an outstanding tax advantage remained despite BG 1 voiding the arrangement; the Commissioner could reasonably reconstruct under GB 1(3) as a deemed dividend or generally under GB 1(1); the arrangement was entered into with a dominant purpose of avoiding tax so shortfall penalties under s141D were properly imposed.