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CSUM 25/03
Issued
04 Nov 2024
Decision
04 Nov 2024
Court
NZHC
Appeal Status
Pending

Official Assignee directed to comply with deduction notice issued by the Commissioner of Inland Revenue in the event that forfeiture orders are not made and restraint is lifted in proceeds of crime proceeding

The Commissioner of Inland Revenue (CIR) filed an interlocutory application in a proceeds of crime proceeding seeking orders that, in the event forfeiture orders are not made and restraint over restrained funds is lifted, the Official Assignee is to pay funds belonging to 11 respondents to the proceeding to the CIR to reduce the outstanding tax liabilities of those respondents. 

The High Court granted the orders sought and directed the Official Assignee to pay the CIR the lesser of the amounts held on behalf of the 11 respondents or their outstanding tax liability as at the date restraint is lifted.

Tax Information Bulletin - Vol 27 No 1, February 2025

Case
Commissioner of Police v Cheng [2024] NZHC 3242
Legal terms
restraint, forfeiture, deduction notice

Criminal Proceeds (Recovery) Act 2009, ss 6, 25, 37, 38, 43, 52, 53, 55, 56 and 83
Tax Administration Act 1994, ss 6, 15B, 89AB, 89D, 106, 109, 113 and 157
Income Tax Act 2007, s CD1
Goods and Services Tax Act 1985, s 43

Commissioner of Police v Cheng [2023] NZHC 606
Commissioner of Police v Snook [2018] NZHC 2537
Westpac Securities NZ Ltd v Commissioner of Inland Revenue [2014] NZHC 3377
Arai Korp Ltd v Commissioner of Inland Revenue [2013] NZHC 958
Tannadyce Investments Limited v Commissioner of Inland Revenue [2011] NZSC 158; [2012] 2 NZLR 153
Commissioner of Inland Revenue v Wilson (1996) 17 NZTC 12,512 (CA)
O’Neil v Commissioner of Inland Revenue [2001] UKPC 16, [2001] 3 NZLR 316, (2001) 20 NZTC 17,051, [2001] WL 535706 (PC)
Miller v Commissioner of Inland Revenue; Managed Fashions Ltd v Commissioner of Inland Revenue (1998) 18 NZTC 13,961 (CA)
McIlraith v Commissioner of Inland Revenue (2007) 23 NZTC, 21,456, [2007] WL 2121918 (HC)