2009 media releases
High Court ruling on Westpac case
8 October 2009
Inland Revenue has welcomed a ruling from the High Court in Auckland ordering Westpac to pay $961 million in back taxes.
In a decision released today, following a seven week hearing earlier this year, Justice Harrison has ruled that the "structured finance" transactions were "tax avoidance arrangements entered into for a purpose of avoiding tax."
"The Commissioner has correctly adjusted the deductions claimed by Westpac in order to counteract its tax advantage gained under an avoided arrangement," he said in the ruling.
Inland Revenue claimed unpaid tax and interest from Westpac for the 1999 to 2005 tax years, for transactions between 1998 and 2002.
The Commissioner of Inland Revenue, Robert Russell, said the decision supports Inland Revenue's long held view that the transactions were tax avoidance.
"This is the second significant decision in our favour involving banks and this type of transaction, and we're very pleased with the outcome."
In July, in a separate case, Justice Wild ordered the Bank of New Zealand to pay $416 million in back taxes after a 13-week hearing in the High Court in Wellington.
BNZ has said it will appeal the ruling in its case.
For further information:
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
- 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
- Inland Revenue welcomes High Court decision
- 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
To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
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P O Box 2198
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New Zealand
Date published: 08 Oct 2009
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