CSUM 20/07
Issued
08 Jul 2020
Decision
12 Jun 2020
Court
NZHC
Appeal Status
Pending

Company restored to the Register and Commissioner granted an extension to issue Challenge Notice

The First Respondent, Waheedullah Faghriyar, and the company Discount Tyres and Mechanical Services Limited (Discount Tyres) initiated the statutory disputes procedure under Part 4A of the TAA (the dispute) with the Commissioner of Inland Revenue (the Commissioner) while a criminal prosecution against the First Respondent (the criminal case) was already on foot. The Commissioner held the dispute in abeyance until the criminal case was concluded in order to protect the First Respondent’s fair trial rights causing an approximately two-year delay before the dispute could be restarted. Due to the delay, the Commissioner would not be able to issue a challenge notice concluding the dispute within the statutory time bar of four years. While the criminal case was on foot Discount Tyres was struck off the Companies Register (the Register). 

Accordingly, the Commissioner applied under section 329 of the CA for Discount Tyres to be reinstated on the Register and under section 89L(1B) of the TAA to extend the time for issuing a challenge notice past the four-year time bar. The Commissioner’s applications were not opposed and were granted by the Court.

Case
Commissioner of Inland Revenue v Waheedullah Faghriyar and Attorney General on behalf of the Registrar of Companies [2020] NZHC 1256
Legal terms
Restoration of company, Challenge notice extension, Exceptional circumstances

Companies Act 1993 s329
Tax Administration Act 1994, Part 4A ss 89D, 89G, 89KP

Commissioner of Inland Revenue v Waheedullah Faghriyar and Attorney General on behalf of the Registrar of Companies [2020] NZHC 1256