New Zealand Case Law: Decisions & Judgments

Topic

Default tax assessments

Legal area

Court

3 Oct 2014

CHEANG v THE COMMISSIONER OF INLAND REVENUE [2014] NZHC 2418

Citation

[2014] NZHC 2418
Court

High Court

The Judge was correct to hold that the failure to file the NPC was a technical irregularity excusable under r 1.10 and that r 1.18.2A permits the proceeding to retain sufficient existence to be regulated retrospectively; the strike out application served the substantive purpose of an NPC in the circumstances, the District Court had jurisdiction, and the defence was properly struck out and judgment entered for the Commissioner.
14 May 2013

PATTERSON V THE COMMISSIONER OF INLAND REVENUE COA CA870/2011

Citation

COA CA870/2011
Court

Court of Appeal

The Registrar was correct to refuse dispensation because the appellant cannot show exceptional circumstances; the appeal is unarguable as default assessments are statutorily final under s109 due to a late NOPA, and the appellant lacked standing to defend the bankruptcy in the High Court; therefore security for costs must be paid.
22 Apr 2013

THE COMMISSIONER OF INLAND REVENUE V AB BELL HC MAS CIV-2012-435-239

Citation

openlaw-8d85d957_3ae1_4d23_8f56_6f1dea831afa.pdf
Court

High Court

The Court exercised its discretion to adjourn the bankruptcy adjudication for four weeks because there was a realistic prospect the debtor could arrange funds or complete accounts to settle the debt within that period, making adjournment appropriate pending review.
6 Aug 2012

COMMISSIONER OF INLAND REVENUE V NEWMARKET TRUSTEES LIMITED COA CA158/2011

Citation

COA CA158/2011
Court

Court of Appeal

The Court of Appeal allowed the appeal, holding the High Court erred in declining to order liquidation under s241(4); an insolvent corporate trustee should as a general rule be put into liquidation to protect trust administration and beneficiaries and to allow a liquidator or the Court to manage replacement of trustees; the High Court had given undue weight to practical inconvenience and accepted professional practice of assetless trustee companies, overlooking trustee law principles and public interest; matter remitted to High Court to obtain required documents and appoint liquidator.
24 Jul 2012

THE COMMISSIONER OF INLAND REVENUE V CWE YIP HC PMN CIV-2011-454-656

Citation

openlaw-533b5410_089c_457c_adb8_2c0b6725835f.pdf
Court

High Court

The application to set aside the Bankruptcy Notice failed because the debtor had not complied with statutory dispute procedures (no timely NOPA), default assessments are deemed correct under s109 TAA, the Commissioner's discretion under s113 had been properly exercised and previously rejected on adequate evidence, the recent s113 request added nothing and did not create a cross-claim equal to the judgment debt; accordingly the Bankruptcy Notice was not set aside, an adjournment refused, and the debtor was ordered to comply by 31 July 2012 or face bankruptcy proceedings, with costs to the Comm…
23 Jun 2011

COMMISSIONER OF INLAND REVENUE v NEWMARKET TRUSTEES LTD COA

Citation

openlaw-f4596caf_38e0_4726_9e0d_cecc4fcec837.pdf
Court

Court of Appeal

Extension of time to serve the notice of appeal was granted because the delay was minimal, caused by a genuine mistake, caused no prejudice to the respondent, and the proposed appeal was not hopeless; costs were awarded to the Commissioner for a standard application on a band A basis and usual disbursements.
23 Aug 2010

JOHN DAVID HARDIE V COMMISSIONER OF INLAND REVENUE CA325/2010

Citation

openlaw-a318ccd0_1a53_4583_98ec_d68041137b82.pdf
Court

Court of Appeal

The Court declined special leave because the proposed appeal did not raise any question of law or fact capable of serious argument and no issue of public importance was disclosed; the contention that Māori are exempt from tax is without merit; alleged calculation errors should have been pursued under the statutory dispute resolution mechanisms and were not properly before the Court; consequently leave to appeal, amendment of grounds and a stay were refused.
23 Apr 2010

JOHN DAVID HARDIE V COMMISSIONER OF INLAND REVENUE HC AK CIV-2009-404-001785

Citation

openlaw-eb809d73_66d7_40b1_a8bf_70ea52e4a592.pdf
Court

High Court

Appellant failed to show any question of law or fact capable of bona fide and serious argument sufficient to justify a further appeal; default assessments were unchallenged and therefore binding; accordingly leave to appeal and the stay were dismissed and costs awarded to the respondent in the sum of $3,840.
19 Mar 2010

JOHN DAVID HARDIE V COMMISSIONER OF INLAND REVENUE HC AK CIV-2009-404-001785

Citation

openlaw-11e54384_cd8b_44d0_b6ff_b22aa9fa28f7.pdf
Court

High Court

Default income tax and GST assessments were valid and enforceable because the appellant failed to file required returns and did not follow statutory procedures to challenge assessments; the appellant's Treaty-based exemption and BORA arguments failed as a matter of law; secrecy and fresh evidence applications were refused; appeal dismissed except for a PAYE concession of $6,250 reducing the judgment to $10,335,160.32.
22 Apr 2008

TOTAL TAXATION & ACCOUNTING SERVICES LTD (IN LIQUIDATION) V FRAZER HC TAU CIV 2007-470-844

Citation

openlaw-54eb4cf5_9fb4_44fd_9822_873035ca4e78.pdf
Court

High Court

The director failed to keep required statutory records and to file returns for an extended period; that failure causally contributed to default tax assessments and impeded the orderly liquidation; the director did not take all reasonable steps to secure compliance; accordingly a declaration under Companies Act s300(1)(b) that the director is liable for the default tax liabilities is justified.