12 Dec 2011
ALESCO NEW ZEALAND LTD AND ORS V COMMISSIONER OF INLAND REVENUE HC AK CIV 2009-404-2145
- Citation
- openlaw-a83d7564_2aca_4314_83da_7bf81f867e78.pdf
- Court
- High Court
The Notes, while complying with G22/G23 formalities and disclosed under accounting standards, were an artificial device used to secure New Zealand tax benefits outside parliamentary contemplation; they had no real economic cost and the option component had no practical value in the related-party context; accordingly the arrangements were tax avoidance under s BG 1, the Commissioner could void the deductions and counteract the advantage, and shortfall penalties for an abusive tax position were properly imposed.