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2009 media releases

Inland Revenue appeals High Court decision
29 April 2009

Inland Revenue is appealing the recent Penny and Hooper decision in the Christchurch High Court, which rejected the department's argument that the two surgeons' income allocation arrangements amounted to tax avoidance.

Acting Director Litigation, Ross Vickery, said that Inland Revenue does not consider the decision correctly reflects tax avoidance law.

"We consider that the use of company and trust structures to avoid higher personal tax rates can be tax avoidance," he said.

Inland Revenue's views on diversion of personal services income, and the circumstances in which Inland Revenue considers it to be tax avoidance, are set out in a Revenue Alert issued last year.

For further information:
Adrienne Perry
(04) 890 1698
(029) 890 1698
adrienne.perry@ird.govt.nz

 

Corporate Communications
Inland Revenue

For all media enquiries phone: 04 890 1698

For general communications enquiries
Phone: (04) 890 1936
Email: corpcomm@ird.govt.nz
Fax: (04) 498 5809

P O Box 2198
12-22 Hawkestone Street
Wellington
New Zealand

  

Date published: 30 Apr 2009

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