2011 media releases
Inland Revenue issues draft tax avoidance Interpretation Statement for consultation
19 December 2011
Inland Revenue has issued a draft Interpretation Statement about tax avoidance for public consultation.
Under sections BG 1 and GA 1 of the Income Tax Act, if an arrangement is a "tax avoidance arrangement", the Commissioner has powers to counteract any tax advantage that an individual or an entity has sought to gain under it.
Chief Tax Counsel, Martin Smith, said that the statement sets out the Commissioner's view of the principles to be applied in reaching a view on whether an arrangement is a "tax avoidance arrangement".
"Tax planning including the use of alternative business structures does not necessarily constitute an avoidance arrangement."
"However, Inland Revenue does focus on cases where there are clear indicators and circumstances indicating that a taxpayer has entered into a tax avoidance arrangement. The draft statement outlines and discusses in some depth the factors that have been highlighted by the Courts, and these are the types of factors that will be important in Inland Revenue's consideration of this issue".
Mr Smith said that the draft statement is particularly based upon the Supreme Court's judgments and approach to the law in the Ben Nevis and Penny and Hooper cases.
"By issuing a framework and the principles for applying section BG 1, Inland Revenue is attempting to pull together what the Courts have been saying about the section, and provide greater clarity as to how to assess each case based on its particular facts and characteristics."
Submissions will close at end of March and the statement is likely to be finalised in mid 2012.
The Interpretation Statement is available on the Inland Revenue website (keyword search "ins0121").
For further information:
David G. Miller
(04) 890 1743
(029) 890 1743
david.miller@ird.govt.nz
Other media releases this year
- Inland Revenue welcomes Alesco court decision
- Inland Revenue tax statistics available online
- Beneficiary sentenced to community detention and service for evasion
- Temporary closure of Inland Revenue site
- Home detention for money laundering and tax evasion
- Home detention for tax evasion
- Accountant receives home detention, community work for tax fraud
- Serious tax evasion brings prison sentence for builder
- Fraudster sentenced to prison for tax offences
- Inland Revenue not "cracking down" on professional trustees
- Inland Revenue issues Revenue Alert about offshore income
- Former restaurant owner get home detention for false income reporting
- Repayment deadline reminder for overseas student loan borrowers
- Builder sentenced to home detention for tax fraud and evasion
- Inland Revenue confirms changes at regional offices
- Inland Revenue issues guidance on tax avoidance arrangements
- Inland Revenue wins 2011 NetGuide Award
- Inland Revenue welcomes Penny and Hooper decision
- Company director sentenced to prison for tax fraud
- Inland Revenue proposes changes at some offices
- Inland Revenue investigating donations tax arrangements
- Inland Revenue launches Compliance Focus 2011-12
- Inland Revenue staff visiting Christchurch libraries this month
- Community detention and community work for tax evasion and fraud
- Hoax email and phishing site warning
- Home detention for tax evasion and fraud
- July tax return date is approaching
- Builder sentenced to home detention for tax fraud
- Reparation to be paid for tax evasion and fraud
- Real estate agent pleads guilty to tax evasion
- Dentist given home detention for tax evasion
- Jail sentence for false GST claims
- Home detention and community service for tax evasion
- Student Loan reminder to overseas borrowers
- Company director given home detention for PAYE non-payment
- Repeat offender goes back to jail for GST fraud
- Commissioner welcomes earthquake decisions
- Repayment holiday ends for overseas borrowers
- Commissioner reassures taxpayers affected by earthquake
- Auckland woman gets community detention for fraud
- Home detention and community service for tax evasion
- Whangarei contractor gets four months home detention for tax evasion
- Wellington businessman receives home detention
- Electrical contractor jailed for tax evasion
- February tax payment reminder
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: 11 Jan 2012
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