New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Unacceptable tax position

Legal area

Court

17 Jun 2016

HONK LAND TRUSTEES LIMITED v COMMISSIONER OF INLAND REVENUE [2016] NZHC 1316 [17 June 2016]

Citation

[2016] NZHC 1316
Court

High Court

There was no evidence HLL provided the alleged management services to the Trust; the $1,116,000 fee was an ex post facto contrivance to eliminate the Trust's taxable income and transfer it to a loss company; consequently the deduction was disallowed and the TRA and Commissioner were upheld; the conduct demonstrated an unacceptable and abusive tax position with a dominant purpose of avoiding tax; appeal dismissed.
15 Aug 2014

DIAMOND v THE COMMISSIONER OF INLAND REVENUE [2014] NZHC 1935

Citation

[2014] NZHC 1935
Court

High Court

Q55 does not authorise treating as a taxpayer's permanent place of abode a dwelling the taxpayer has never lived in merely because it is available and the taxpayer retains connections; on correct construction of s OE 1(1) a 'permanent place of abode' requires the dwelling to bear the character of a home for the taxpayer (continuing/habitual residence) and 24 Waikato Esplanade was an investment/rental property never lived in by the appellant and therefore was not his permanent place of abode so he was not resident for the years in issue; appeal allowed.