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....

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...

We cannot have an income tax without a concept of income. For a number of reasons, our concept of income must be artificial. A principal reason is that income tax law generally taxes the results of legal transactions rather than their underlying economic substance, which causes a dislocation...

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...

The Taxation (Beneficiary Income of Minors, Service-Related Payments and Remedial Matters) Act 2001 taxes the income of most beneficiaries of trusts who are minors at 33 per cent. This measure responded to parents strategically diverting income to their children via trusts, with a view to that...

Governments attack tax avoidance in a number of ways. Statutory anti-avoidance rules are one means. Such rules come in two forms: specific and general. General rules potentially apply to any kind of transaction that may result in tax avoidance. Section 99 of the New Zealand income Tax Act 1976...

Section 67 of the Income Tax Act 1976 taxes as income certain gains on the sale of land that would ordinarily be classed as capital. Several proposals were made to repeal the section or severely to limit its effect. The article argues that the section contains a number of flaws, though none that...

Delegates from the Institute of Policy Studies at Victoria University of Wellington and the Australian Tax Research Foundation met with taxation experts from Canada and Sweden. The two countries have well developed advance rulings procedures. The questions that the meeting discussed are set out...

As commercial transactions and tax law have both become more complex, tax practitioners have called for the establishment of procedures whereby taxpayers can find out in advance the official opinion of the revenue authorities as to the tax implications of their proposed transactions. If formally...

In 1984 the Under-Secretary to the Minister of Finance announced that section 188A of the Income Tax Act 1976 would be amended in the light of the decision in Grieve [1984] 1 NZLR 101. The case related to the offsetting of farming losses against other income in years before the offset was...