Land development - tax evasion

The Taxation Review Authority (the “TRA”) upheld the Commissioner’s assessments for tax on unreported income and shortfall penalties for evasion.

The TRA concluded that the income from land sales in the disputed transactions was income under s CB 3 of the Income Tax Act 2007 (“ITA”) or alternatively income under s CB 1 of the ITA. The TRA also concluded that the disputant was liable for a shortfall penalty for evasion, finding he dishonestly and systematically evaded tax and attempted to avoid the consequences of his deception.

Tax Information Bulletin Vol 33 No 11 - December 2021