2009 media releases
Inland Revenue welcomes High Court decision
16 July 2009
The Commissioner of Inland Revenue, Robert Russell, has welcomed the High Court ruling that BNZ must pay $416 million in back taxes.
Justice Wild yesterday rejected BNZ’s challenge to Inland Revenue’s tax assessments. The ruling followed a thirteen-week hearing in the Wellington High Court, which finished last month.
The case revolved around a particular kind of transaction known as 'structured finance.'
The BNZ made an equity investment in an overseas entity on terms requiring the overseas entity to buy back that investment when the transaction finished. The transactions were structured to allow the BNZ to deduct its expenses of earning the income gained on the investment, while receiving that income free of tax.
The six transactions in issue spanned eight income tax years between 1998 and 2005.
Justice Wild said, "Putting aside the tax benefits they generated, these transactions had no commercial rationale, logic or purpose for the BNZ."
Mr Russell said that Inland Revenue considered these types of transactions to be tax avoidance. "The High Court has agreed, and we are pleased with this outcome."
The decision is open to appeal.
Catherine Delore
(04) 890 1698
(029) 890 1698
catherine.delore@ird.govt.nz
Other media releases this year
- Structured finance cases settled
- Inland Revenue warns of party plan pitfalls
- Tax fraudster breached worker trust
- High wealth individuals pay an extra $81 million
- Residential rental property and depreciable items
- Lower Hutt man sentenced for tax evasion
- Two jailed for multi-million dollar tax fraud
- High Court ruling on Westpac case
- Christchurch man jailed for GST fraud
- Tsunami donations tax credits
- Former Queenstown man jailed on tax evasion charges
- Jail for $5 million tax fraud
- Tiler jailed for $1.6 million tax evasion
- Online service makes tax refunds easier
- Auckland property consultant jailed for tax fraud
- Te Kuiti accountant jailed for 12 months for tax evasion
- Property developer sentenced for GST fraud
- Wellington man sentenced for tax fraud
- Man jailed for GST fraud
- Helping you get it right
- Last day for tax returns fast approaching
- Auckland man sentenced on GST fraud charges
- GST fraudster convicted again
- New Plymouth woman jailed for fraud
- Christchurch man sentenced on tax offences
- Extradited tax fraudster sentenced to home detention
- Jail for multimillion dollar tax fraud
- Thousands of people eligible for unclaimed millions
- Inland Revenue appeals High Court decision
- Inland Revenue considers voluntary redundancies
- Talk to us, says Commissioner of Inland Revenue
- Apply now for the provisional tax ratio option
- Keep IRD numbers confidential
- Wellington accountant sentenced on tax fraud charges
- Avoid unexpected GST bills on apartment sales
- Nelson man jailed for tax evasion
- Stay informed about KiwiSaver changes
- Tax payment date fast approaching
- Former tax agent employee sentenced for fraud
Corporate Affairs
Inland Revenue
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New Zealand
Date published: 16 Jul 2009
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