Site Archives Tax accounting

Tax Avoidance – it all comes down to statutory interpretation

In recent times, we have seen several tax cases being lost by Taxpayers. Analysing the judgments, I believe we have seen a fundamental move when dealing with tax avoidance – a move back towards statutory interpretation. The Newton and Elmiger cases are the policy basis for our anti-avoidance rule as they focus on statutory interpretation and I believe the courts are showing a move back to this ordinary approach (as can be seen in the Banks cases).

Read more

Penny and Hooper

The appeal in Penny and Hooper has been decided in favour of the Commissioner in a 2:1 majority decision of the Court of Appeal released on 4 June 2010.

In the first instance the decision could be considered to have been rendered largely nugatory for the time being given the recent reduction of the top marginal rate to that of the trustee rate. However, with the new company rate now significantly below these rates, the matter of below market salaries will likely be a live issue for some time.

Read more

Penalty interest on breaking a fixed interest mortgage

Mortgage “break fees” or “penalty interest” is a cost that has become more common place in the current economic times. With the recession starting to bite and with some taxpayers owing large sums to the banks on fixed loans with comparatively high interest rates, decisions about breaking the fixed-rate term to get lower rates have to be made. Invariably decisions like this come with a cost as banks want to be compensated for the loss of revenue that they would have received relative to the higher interest rate.

Read more

Recent comments

  • K Anderson: My mother in law is in a resthome, and has been paying her way since she went in some six years ago.My...
  • Toni Wilson: It was great to find your web-site as we are in the middle of WINZ looking at Mum’s (my...
  • Sybrand van Schalkwyk: The IRD has published a very comprehensive and useful guide for software developers on the...
  • Jim Black: Well I have written to IRD re their Alert asking for comments. Basically what I suggested to them was...
  • Gerard Gunn: I must agree. I am surprised that the reality of what this new law, created retropsectively ,can do to...
  • Vicki Ammundsen: While by no means definitive, (pending any appeal of Penny and Hooper) there is now guidance of...
  • Daniel Hunt: The latest Court of Appeal decision is in my view a big win for the IRD. This case highlights the fact...
  • Jennifer Dalziel: In reply to Carol… I am not quite sure what you mean here. A maximum he should pay for his...
  • J Black: Re Penny Hooper. I reckon Judge Randerson has given IRD a tiger to try and tame by holding onto its tail. Me...
  • Gerard Gunn: Type your comment here. I have to agree with the above. Tax avoidance in many cases will now come down...

Upcoming Events

Poll

In the past 12 months, do you think the amount of IRD investigations being undertaken has?

View Results

Loading ... Loading ...