Absence of evidence makes it impossible to prove nexus with the expenditure and the claimed deductions
The Taxation and Charities Review Authority (TCRA) upheld the income tax assessments by the Commissioner of Inland Revenue (the Commissioner) because the evidence failed to establish a material link between the disputed expenditure and the receipt or expectation of income.
Income Tax Act 2007, ss BD2, DA 1, DA 2, HG 1
Tax Administration Act 1994, ss 42(4), s 138G, s 138E(1)(e)(iv), s 149A(2)
Commissioner of Inland Revenue v Banks [1978] 2 NZLR 472 (CA)
Buckley & Young Ltd v Commissioner of Inland Revenue [1978] 2 NZLR 485 (CA)
Case V17 (2002) 20 NZTC 10,192 (TC)
Accent Management Ltd v Commissioner of Inland Revenue (2005) 22 NZTC 19,027 (HC)
Ben Nevis Forestry Ventures Ltd v Commissioner of Inland Revenue [2008] NZSC 115, [2009] 2 NZLR 289 (SC)
PL Brown Farms Ltd v Commissioner of Inland Revenue [2014] NZHC 1601 (HC)
Commissioner of Inland Revenue v Trustpower Limited [2015] NZCA 253 (CA)
Trustpower Limited v Commissioner of Inland Revenue [2016] NZSC 91 (SC)