New Zealand Case Law: Decisions & Judgments

Topic

Paye

Legal area

Court

20 Oct 2021

COMMISSIONER OF INLAND REVENUE v HUSMAN LTD [2021] NZHC 2812

Citation

[2021] NZHC 2812
Court

High Court

Defendant failed to rebut the statutory presumption of insolvency created by non-compliance with the statutory demand; the Commissioner's refusal of the defendant's payment proposals was a lawful exercise of discretion under the Tax Administration Act (s 6A and s 176) and SPS 18/04 does not create an entitlement to relief; CDEMA does not relieve the taxpayer of tax obligations; consequently leave to file a defence and for the director to appear out of time was refused and the company was ordered into liquidation with appointment of liquidators.
24 Mar 2017

THE COMMISSIONER OF INLAND REVENUE v EVALUATION CONSULT (NEW ZEALAND) LIMITED [2017] NZHC 552

Citation

[2017] NZHC 552
Court

High Court

No binding repayment agreement existed because the Commissioner's 22 December 2016 acceptance was expressly 'in principle' and conditional on formal documentation; Evaluation repeatedly defaulted on PAYE obligations, there was no genuine dispute as to debt, no abuse of process by the Commissioner, and substantial unpaid penalties rendered the company insolvent such that stay/adjournment was refused and a liquidation order was appropriate.
7 Nov 2014

JENNINGS ROADFREIGHT LIMITED (IN LIQUIDATION) v COMMISSIONER OF INLAND REVENUE [2014] NZSC 160

Citation

[2014] NZSC 160
Court

Supreme Court

Section 167(2) is a specific qualification of s167(1); where PAYE amounts fell due before liquidation but remain unpaid at liquidation, s167(2) applies and those amounts are distributed under Companies Act Schedule 7 rather than being retained as s167(1) trust property (unless potentially segregated prior to liquidation). Consequently the Commissioner must repay the contested bank balance of $14,076.38.
1 Oct 2013

COMMISSIONER OF INLAND REVENUE V JENNINGS ROADFREIGHT LIMITED (IN LIQUIDATION) CA432/2012 [2013] NZCA 455

Citation

[2013] NZCA 455
Court

Court of Appeal

Majority held that s167(1) creates a statutory trust over PAYE deductions that are represented by funds held in the employer's bank account at the commencement of liquidation; that trust survives liquidation and excludes those funds from the company estate, so s167(2) applies only to unpaid PAYE not represented by funds at liquidation; accordingly the Commissioner was entitled to retain $14,076.38 paid by the bank.
2 Jul 2013

TAMIHERE v COMMISSIONER OF INLAND REVENUE [2013] NZHC 1651

Citation

[2013] NZHC 1651
Court

High Court

Leave to file the appeal out of time was refused because the appellant was significantly out of time and the proposed appeal involved legally untenable arguments (including rejected 'freeman' and Cestui Que Vie trust arguments) and therefore had no prospect of success; assessments established the debt so extension was not appropriate.
14 Mar 2012

COMMISSIONER OF INLAND REVENUE V J F CONTRACTORS HC AK CIV-2012-404-000372

Citation

openlaw-cb1682e6_91a2_4c64_b31a_c15e0f1ae830.pdf
Court

High Court

Extension of time was refused because the defendant failed to demonstrate an arguable defence on the papers and the company was presumptively insolvent given the substantial outstanding tax liabilities; accordingly the plaintiff was entitled to proceed undefended.
20 Apr 2011

THE COMMISSIONER OF INLAND REVENUE V SALEPRO LIMITED HC MAS CIV-2010-435-255

Citation

openlaw-f9969298_4b6f_439c_b6f1_fc21d5a2fa3e.pdf
Court

High Court

The defendant failed to comply with the statutory demand and is therefore presumed unable to pay its debts; the defendant admitted an outstanding PAYE/KiwiSaver liability of $2,300–$3,000, produced no verified evidence of solvency or assets, offered no credible dispute sufficient to defeat the statutory presumption, and the Court had no basis to exercise its discretion to refuse liquidation, so appointment of liquidators was ordered.
3 Dec 2010

THE COMMISSIONER OF INLAND REVENUE V TAWERA LAND COMPANY LIMITED HC PMN CIV-2010-454-615

Citation

openlaw-e5a87054_1370_4981_a426_1115c399cbb2.pdf
Court

High Court

The defendant is deemed insolvent under s287 due to failure to comply with the statutory demand; it failed to provide independently verified financial information, continues to incur unpaid tax (including a substantial omitted GST amount) and its settlement proposal was unreliable; accordingly the Court must, absent exceptional reasons, order liquidation and appoint liquidators.
6 Mar 2009

COMMISSIONER OF INLAND REVENUE V TUWELL TRUST LIMITED HC HAM CIV 2008-419-001620

Citation

openlaw-33af0944_6850_4231_a56b_6c282bfdf4dd.pdf
Court

High Court

The court concluded that the documentary and registration evidence (IRD registration, GST/PAYE registrations and returns, matching GST number on invoices, same director and address) showed the company had traded and the defendant's explanation was implausible; the defendant's failure to comply with the statutory demand supported a finding of inability to pay; accordingly an order for liquidation was warranted.
14 Jun 2007

Donaldson v Accident Compensation Corporation

Citation

[2007] NZACC 111
Court

District Court

Appellant produced no evidence of regular PAYE/source deduction payments and failed to discharge the evidential burden to rebut Inland Revenue and ACC findings; therefore weekly compensation must be calculated on relevant year income and not on an asserted but unexecuted intention to pay wages; appeal dismissed.