New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Financial arrangement rules

Legal area

Court

27 Sept 2018

HONG v COMMISSIONER OF INLAND REVENUE [2018] NZHC 2539

Citation

[2018] NZHC 2539
Court

High Court

Appeal dismissed because appellant failed to prove the debts were written off in the relevant income year or that debtors were legally released, failed to establish he carried on a lending business dealing in financial arrangements similar to the loans, and therefore deductions under s DB31 do not apply; the Commissioner was justified in imposing shortfall penalties because appellant did not take reasonable care and took an objectively unacceptable tax position.
25 Aug 2016

FUGLE v COMMISSIONER OF INLAND REVENUE [2016] NZHC 1997

Citation

[2016] NZHC 1997
Court

High Court

Crediting the appellant's current account in 2005 was a retrospective accounting recognition and did not constitute a payment because no sum was placed unreservedly at the appellant's disposal and there was no company action (or shareholder assent) effecting a payment; accordingly the financial arrangement had not matured in 2005 and no base price adjustment was triggered; the Authority erred in excluding the accountant's historical accounting records which supported that position.