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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

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Corporate Affairs
Inland Revenue

To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.

P O Box 2198
Wellington 6140
New Zealand


Date published: 30 Apr 2009

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