Tax Avoidance and the interpretation of sections BG 1 and GA 1 of the Income Tax Act 2007
This interpretation statement outlines the Commissioner's view of the law on tax avoidance in New Zealand. It sets out the Commissioner's view of the principles to be applied and provides a framework within which those principles will be applied. The Commissioner applies the approach to sections BG 1 and GA 1 established by the Supreme Court in Ben Nevis Forestry Ventures Ltd v Commissioner of Inland Revenue  NZSC 115 and subsequently confirmed in all relevant judicial decisions. Flow charts and examples illustrating how the approach is worked through are included. The statement also discusses various legal issues that may arise. This statement replaces the Commissioners statement on section 99 of the Income Tax Act 1976 (Appendix C to the Tax Information Bulletin, Vol 1, No 8, February 1990).