22 Apr 2016
TALE HOLDINGS LIMITED v THE COMMISSIONER OF INLAND REVENUE [2016] NZHC 763
- Citation
- [2016] NZHC 763
- Court
- High Court
The transfer constituted an arrangement under s 76; objectively it had a tax avoidance purpose not merely incidental because the purchase price was contrived (set to bank debt), the purchaser was a shell with no economic payment, market forces were suspended and the likely GST refund would unjustly benefit the bank/guarantor; accordingly the Commissioner was entitled to void the arrangement for tax purposes, deny the GST refund and impose the shortfall penalty.