12 Mar 2019
CULLEN GROUP LTD v THE COMMISSIONER OF INLAND REVENUE [2019] NZHC 404
- Citation
- [2019] NZHC 404
- Court
- High Court
The arrangement was a tax avoidance arrangement: although it fitted the literal AIL/NRWT rules, its commercial and economic substance was that Mr Watson remained in effective control and was on both sides of the loans, no new offshore funding was introduced, and the AIL concession was deployed in a manner outside Parliament's purpose and contemplation with a more-than-incidental effect of altering tax incidence; consequently the arrangement was void under s BG 1 and the Commissioner lawfully counteracted by assessing NRWT; the assessment was not time-barred in the circumstances of this case.