10 Mar 2017
HONK LAND TRUSTEES LIMITED v COMMISSIONER OF INLAND REVENUE [2017] NZCA 54 [10 March 2017]
- Citation
- [2017] NZCA 54
- Court
- Court of Appeal
HLT failed to prove that HLL provided identifiable management services to the trust and therefore there was no required nexus for a deduction under s BD 2; alternatively, the fees were a contrived device to eliminate the trust's tax and constituted a tax avoidance arrangement under s BG 1, and HLT accordingly took an abusive tax position attracting a 50% shortfall penalty under s 141D TAA.
- Deductibility of expenses
- General anti-avoidance
- Abusive tax position penalty
- Reconstruction
- Management fees