5 Mar 2013
ALESCO NEW ZEALAND LIMITED V COMMISSIONER OF INLAND REVENUE COA CA53/2012
- Citation
- openlaw-8c4edf7f_19e8_4fcc_9d11_a575da510fee.pdf
- Court
- Court of Appeal
The Court held the OCN arrangement was a tax avoidance arrangement under s BG 1 because Alesco NZ used the financial arrangements rules and Determination G22 to claim deductions for notional interest without incurring the real economic cost Parliament intended to be required for such deductions; G22 does not convert a non-existent legal or economic liability into admissible expenditure for tax purposes; accordingly the arrangement was void, the Commissioner validly disallowed the deductions and reconstructed tax positions under s GB 1, and the imposition of shortfall penalties for an abusive…