18 May 2016
ANZCO FOODS LTD v COMMISSIONER OF INLAND REVENUE [2016] NZHC 1015
- Citation
- [2016] NZHC 1015
- Court
- High Court
The settlement did not convey a separate 'right to use land' but varied and removed a restrictive encumbrance (a chose in action) thereby restoring ANZCO's inherent ownership rights; those restored rights run with the fee simple estate and do not have a finite useful life or reasonable expectation of declining value while used, so the payment was capital and not depreciable intangible property under the Income Tax Act 2007; the Commissioner's assessments are confirmed.