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CSUM 22/03
03 Oct 2022
03 Oct 2022
Appeal Status
Not appealed

Taxation Review Authority reconfirms that backdated ACC weekly compensation is taxed in the year of receipt; s 9 of the NZBORA does not support the Disputant’s position

The Disputant challenged her income tax assessment for the year ended 31 March 2017 (“the Period in Dispute”). The Accident Compensation Corporation (“ACC”) made a gross payment of $363,808.36 (“the ACC Weekly Compensation Payment”) to the Disputant in the Period in Dispute. The Commissioner of Inland Revenue (“the Commissioner”) taxed the entire ACC Weekly Compensation Payment in the Period in Dispute, when the Disputant received it.

Tax Information Bulletin Vol 34 No 9 - October 2022

Disputant v Commissioner of Inland Revenue [2022] NZTRA 2
Legal terms
Backdated ACC weekly compensation, Income, derive, cash basis, NZBORA

Income Tax Act 2007, s BD 3;
Accident Compensation Act 2001, s 252;
New Zealand Bill of Rights Act , ss 6 and 9.

Disputant v Commissioner of Inland Revenue [2022] NZTRA 2