23 Sept 2015
AAA DEVELOPMENTS (ORMISTON) LTD v COMMISSIONER OF INLAND REVENUE [2015] NZHC 2318
- Citation
- [2015] NZHC 2318
- Court
- High Court
The High Court upheld the TRA: AAA's sole business was the specified property development and it ceased on 24 July 2008 when AAA accepted the vendor's repudiation; expenses incurred after that date lacked the required nexus to any continuing income earning process and were not deductible; the settlement payment did not constitute income from disposal of revenue account property and did not render related expenses deductible; the taxpayer's position was objectively unlikely and a shortfall penalty was properly imposed.