17 Sept 2010
KRUKZIENER V COMMISSIONER OF INLAND REVENUE HC AK CIV-2010-404-000728
- Citation
- openlaw-41850fb5_6721_4e30_93a5_eef3617bbe4f.pdf
- Court
- High Court
The Court held that the pattern of substantial advances and sporadic repayments over a long period, repayments occurring only when non‑taxable capital distributions were available and control by the appellant over both the lenders and distribution sources, evidenced a concerted arrangement. Viewed objectively and commercially, the arrangement had tax avoidance as a dominant purpose/effect because it deferred or relieved income tax and operated outside the intended scope of the specific provisions. The Commissioner was not time‑barred because the taxpayer had omitted mention of the contested r…