There are several fundamental problems with the judicial concept of income, that is, the concept of income that the courts employ for tax purposes. First, the judicial concept sees income as a flow, rather than as a gain. Secondly, as a consequence, it taxes some apparent flows that do not...

This paper considers New Zealand's hybrid tax credit system consisting principally of a credit system combined with exemption features in respect of certain classes of income, both of which aim to provide relief to minimise the impact of foreign income being taxed in a foreign jurisdiction as...

Does a cooked lobster packed in an individually sealed plastic bag constitute a “prepared fish dinner” or “prepared consumer fish pack” for the purposes of the Income Tax Act 1976, section 156? In Taspac Seafoods Ltd. v. Commissioner of Inland Revenue (1983) 6 NZTC 61,636, 6 TRNZ 513,...

CIR v. Banks (1978) 2 NZLR 472 considered the issue of deductibility of home office expenses. Richardson J rejected the Australian approach, which holds that if the initial capital outlay was made for private purposes, the fact that the property is later used for income-producing is immaterial....

Section 67(4)(b) of the Income Tax Act 1976 states that assessable income shall include all profits made from the sale of land where the taxpayer is in the “business of dealing in land”. In Henderson v Commissioner of Inland Revenue (21 October 1982) HC 79/79 the taxpayer objected to being...

The President signed § 7701(o) of the Internal Revenue Code, the first U.S. statutory general anti-avoidance rule, or “GAAR,” into effect on 30 March 2010. The birth of the American GAAR was buried in § 1409 (a) of the Health Care and Education Reconciliation Act of 2010 (H.R. 4872). With...

A comment on the case of Grieve v Commissioner of Inland Revenue (1982) 5 NZTC 61,145. The taxpayer had run a loss-making business which he had continued to deduct from other income. Eventually, the Commissioner decided to disallow further deductions. The court upheld the Commissioner's...

If interpreted in a strict legal sense, beneficial ownership rules in tax treaties would have no effect on conduit companies because companies at law own their property and income beneficially.In consequence, courts and scholars have adopted surrogate tests that they attempt to employ in place...

This paper comprises a transcript of the oral addresses and discussion at a colloquium that compared the general anti-avoidance rule of income tax law with the civil law doctrine of Rechtsmissbrauch (abuse of law) and similar doctrines in eight jurisdictions: Germany, Croatia, New Zealand,...