Re Bloomfield (28 August 1978, M 20/77, Gisborne Supreme Court, Jeffries J) dealt with the valuation of an interest in a farm partnership on the death of one of the partners. The deceased held a one twelfth share in the partnership. In the absence of any written partnership agreement, the...

As part of systems of tax law, general anti-avoidance rules frustrate transactions that contrive to avoid tax. Avoidance transactions adhere to the strict letter of the law while flouting or exploiting its policy. Statutory general anti-avoidance rules are found in many countries in Europe and...

Livestock transfers must be handled differently from other asset transfers because of the standard value system and its accompanying deferred tax liability. Two options are discussed: to transfer the livestock to a family trust or to transfer the livestock to a child of the farmer. Section 89 of...

Section 17(4)(a) of the Estate and Gift Duties Act 1968 allows any income tax payable in respect of the deceased to be considered a debt in the calculation of the final balance of the estate. Factors that suggest a high value should be adopted by the executors include that the income of the...

The standard value system is a special method of accounting for livestock that is sanctioned by the Income Tax Act 1976 for the benefit of farmers. The system allows farmers to navigate the fluctuations in the livestock market and to attribute a standard (rather than market) value to their stock...

Section 16 of the Estate and Gift Duties Act 1968 catches death benefits left by a deceased who was a member of any superannuation scheme. The case of Hounsell v CIR (SC Wellington, 17 April 1975, M274/73) illustrates that considerable duty can be payable on such a scheme. Some estate planning...

In order to avoid holiday houses being bought into the notional estate by either section 11 or 12 of the Estate and Gift Duties Act 1968 many lawyers recommend alienating the property to a discretionary trust and leasing it back to the original owners. This technique results from a...

The matrimonial home allowance was introduced by the Estate and Gift Duties Amendment Act 1976. The allowance reinforced the importance of planning to reduce estate duty and to take full advantage of the joint family home legislation. The article suggests some planning techniques. As at 2009,...

Trusts fit uneasily into any tax system. The beneficiary should be taxed on any trust income received; yet the trustee also receives income that is amenable to taxation. It would not be fair for the income to be taxed to both the beneficiary and the trustee, yet neither should the trustee escape...

The general charging provisions of the Income Tax Act 1976 purport to tax all assessable income. Sections 226 to 233 of the Act lay down a code for the taxation of the income of trustees and beneficiaries. Is this code an exhaustive statement of the assessability of trust income over-riding pro...