Tax Information Bulletin: Corrections

Summary of Supreme Court Ruling on "Trinity"

The summary case notes for the "Supreme Court Ruling on 'Trinity'" published in the Tax Information Bulletin Vol 21, No 1 (March 2009), page 44, contained an error in the Impact of decision.

The Impact of decision stated that the Court clearly directed that the Commissioner ought to advance a matter on the basis that there is sham, or avoidance, but not both. This was incorrect.

The Supreme Court decision on the sham issue is to be found at paragraphs [32] to [39] of the majority judgment.

The Supreme Court found it is important to keep firmly in mind the difference between sham and avoidance:

• [34] It is important to keep firmly in mind the difference between sham and avoidance. A sham exists when documents do not reflect the true nature of what the parties have agreed. Avoidance occurs, even though the documents may accurately reflect the transaction which the parties intend to implement, when, for reasons to be discussed more fully below, the arrangement entered into gives a tax advantage which Parliament regards as unacceptable.

The Commissioner, keeping in mind the difference between sham and avoidance, can advance both sham and avoidance.

Other pages in: Corrections

• Correction - to TIB Vol 24, No 3 (April 2012)
• Correction - to TIB Vol 23, No 9 (November 2011)
• Correction - to TIB Vol 23, No 3 (April 2011)
• Corrections - to TIB Vol 23, No 1 (February 2011)
• Corrected foreign currency amounts - conversion to New Zealand dollars
• Incorrect currency rates - October 2009
• Correction - incorrect figure in the National Average Market Values of Specified Livestock Determination, 2008
• Interim judgment printed in error
• Incorrect currency rates
• NZIT investments not exempt
• Correction
• Correction - SPS 07/05 - Transfer of depreciable property between associated persons - section EE 33 of the Income Tax Act 2004
• Correction - Operational Statement OS 06/01 GST Treatment of Supplies of Telecommunications Services
• Correction - SPS 06/02 Writing off outstanding tax
• Correction - to TIB Vol 19, No 3 (April 2007)
• Correction - FBT tax value of vehicle under different balance date scenarios
• Correction - Threshold to account for GST on a payments basis (May 2006)

Date published: 11 Feb 2010

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