Inland Revenue has welcomed today's Supreme Court's decision which has further upheld Inland Revenue's approach to the "Trinity" forestry investment scheme.
Chief Justice Sian Elias and Justices Andrew Tipping, John McGrath, William Young and Thomas Gault, upheld an appeal by the Commissioner and restored a 2009 High Court decision maintaining Inland Revenue's interpretation about tax deductions made by the scheme's investors.
"Redcliffe alleged that the Commissioner had knowingly and wrongly applied a depreciation rule to expenditure incurred by investors in the Trinity scheme and other provisions should have been applied instead," Director Litigation, Karen Whitiskie, said.
"Any assertion by Redcliffe that the Commissioner's application of the deduction rules was fraud was not upheld by the Supreme Court."
"This decision also shows that the Commissioner was correct to oppose the company's application that the original 2004 High Court decision be set aside on these grounds," Ms Whitiskie said.