Implications of the Mitsubishi decision
This paper considers the Privy Council decision Commissioner of Inland Revenue v Mitsubishi Motors New Zealand Limited (1995) 17 NZTC 12,351 ("Mitsubishi") and its technical implications.
This issues paper resulted in the following interpretation statement:
About issues papers
Inland Revenue’s Tax Counsel Office (Public Advice and Guidance) develops and publishes public statements interpreting the tax laws.
Where significant uncertainty exists, it helps us to hear from interested parties before we prepare a public statement. This generates discussion so we gain a better understanding of the issues, including practical concerns. An issues paper sets out our initial views on how the relevant tax laws may apply. If it results in the issue of a draft public statement, public consultation will occur in the usual manner.
Given that issues papers produced by the Tax Counsel Office represent our initial views only, taxation officers, taxpayers and practitioners must not rely on them. Only finalised public statements represent authoritative statements by Inland Revenue of its stance on the issues covered.
Any views presented in an issues paper do not change the Commissioner’s current position or practices.