BR Pub 20/06
Issued
10 Jul 2020
Start
03 Apr 2020
End
30 Oct 2020

Income Tax and Goods and Services tax – Director’s liability and the COVID-19 “safe harbour” in schedule 12 to the Companies Act 1993

This public ruling considers whether s HD 15 of the Income Tax Act 2007 or s 61 of the Goods and Services Tax Act 1985 (which relate to director's liability for tax of a company) will apply to a director of a company that has been affected by COVID-19 and that relies on the safe harbour in schedule 12 of the Companies Act.  The ruling concludes that, of itself, reliance on the safe harbour by a director, and the company continuing to trade or carry on business or incur new obligations on commercial, ordinary business terms, will not result in the application of those provisions.

Tax Information Bulletin Vol 32 No 7 - August 2020

Companies Act 1993, ss 135, 136, 138B, schedule 12
Goods and Services Tax Act 1985, s 61
Income Tax Act 1994, s HK 11
Income Tax Act 2004, s HK 11
Income Tax Act 2007, s HD 15
Official Information Act 1982, s 6
Tax Administration Act 1994, s 91D

AMP Life Ltd v CIR (2000) 19 NZTC 15,940 (HC)
Auckland Harbour Board v CIR (1999) 19 NZTC 15,433 (CA)
BNZ Investments Ltd v CIR (2000) 19 NZTC 15,732 (HC)
Case X11 (2005) 22 NZTC 12,175
CIR v BNZ Investments Ltd (2001) 20 NZTC 17,103 (CA)
CIR v BNZ Investments Ltd [2002] 1 NZLR 450
CIR v Haenga (1985) 7 NZTC 5,198 (CA)
Claremont Petroleum NL v Cummings (1992) 110 ALR 239 (FCA)
Commissioner of Police v Ombudsman [1985] 1 NZLR 578 (HC)
Glenharrow Holdings Ltd v CIR [2008] NZSC 116, [2009] 2 NZLR 359 (SC)
Henderson v CIR [2016] NZHC 1987, (2016) 27 NZTC 22,068 (HC)
Newton v FCT [1958] 2 All ER 759 (PC)
Peterson v CIR [2005] UKPC 5
Russell v CIR (No 2) (2010) 24 NZTC 24,463 (HC)
Russell v CIR [2012] NZCA 128
Shell New Zealand Ltd v CIR (1994) 16 NZTC 11,303 (CA)
Spencer v CIR (2004) 21 NZTC 18,818 (HC)
Strachan v Marriott [1995] 3 NZLR 272 (CA)
Vinyl Processors (New Zealand) Ltd v Cant [1991] 2 NZLR 416 (HC)