Lack of complete financial records secures TCRA win for the Commissioner in major income suppression case
The Commissioner of Inland Revenue (CIR) assessed the 6 Disputants (four brothers and their two brothers-in-law) on numerous deposits into bank accounts they controlled. The Disputants were involved, in different ways, with two companies involved in exporting vehicle parts from New Zealand to the United Arab Emirates (UAE). A related company received the vehicle parts in the UAE and sold them there. Funds were remitted to the Disputants from the UAE. The CIR considered these deposits were taxable and the Disputants had underreported their income for tax purposes.
Tax Administration Act 1994, ss 15B, 22, 89AB(5), 89C(eb), 89D(1)(b), 89N, 89P, 108, 114, 138E(1)(e)(iv), 141(1), 141E(1), 143B(1), 148(1) and 149A(2)
Evidence Act 2006, section 92
Lawyers and Conveyances Act (Lawyers: Conduct and Client Care) Rules 2008, rule 13.8
Buckley & Young Ltd v Commissioner of Inland Revenue [1978] 2 NZLR 485 (CA)
Ben Nevis Forestry Ventures Ltd v Commissioner of Inland Revenue [2008] NZSC 115, [2009] 2 NZLR 289 (SC)
R v Soutar [2009] NZCA 227 (CA)
R v Dewar [2008] NZCA (CA)
CSUM 25/09 | 13-Dec 2024
UNCLASSIFIED Page 1 of 7
[IN CONFIDENCE RELEASE EXTERNAL]
Jones v Dunkel (1959) 101 CLR 298 (High Court of Australia)
Edwards v Commissioner of Inland Revenue [2016] NZHC 1795 (HC)
Great North Motor Co Ltd (in receivership) v Commissioner of Inland Revenue [2017] NZCA 328 (CA)
Babington v Commissioner of Inland Revenue [1957] NZLR 861 (New Plymouth SC)
Cross & Goulding v Commissioner of Inland Revenue [1987] 1 NZLR 498 (1987) 9 NZTC 6,101, (CA)
Tannadyce Investments Ltd v Commissioner of Inland Revenue [2011] NZSC 158 [2012] 2 NZLR 153 (SC)
Case Y14 (2008) 23 NZTC 13,137 (TRA)