Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Supreme Court dashes fraud claims against IRD in Trinity

Supreme Court dashes fraud claims against IRD in $3.7B Trinity tax case

By Paul McBeth

Nov. 9 (BusinessDesk) - New Zealand's Supreme Court has rejected a claim the Inland Revenue Department fraudulently won its $3.7 billion tax case involving the 'Trinity' forestry scheme.

The court bench, comprising Chief Justice Sian Elias and Justices Andrew Tipping, John McGrath, William Young and Thomas Gault, upheld an appeal by the Commissioner of Inland Revenue, and restored a High Court decision maintaining the tax department's interpretation about tax deductions made by the scheme's investors. The decision was delivered by Justice McGrath in Wellington today.

The tax department has previously said the scheme would have cost taxpayers up to $3.7 billion over the 50-year-lifespan of the investment scheme.

A group of Trinity investors, including the scheme's architect Garry Muir, claimed the IRD "deliberately refrained from putting material facts and law" before the High Court in the original proceeding, "so as to secure a judgment that department officers knew would not have been available if there had been full and frank disclosure of the legal position," the judgment said.

The group, led by Muir's Redcliffe Forestry Venture, said the commissioner "knowingly and wrongly applied a depreciation allowance to expenditure incurred by the Trinity investors" under a certain provision of the Income Tax Act.

The Supreme Court judges rejected the accusation, saying the "Redcliffe cannot credibly claim that the litigation strategy attributed to the commissioner compromised its ability to mount an argument on the subpart's applicability."

Because Redcliffe challenged the legal correctness of a Supreme Court ruling, underpinned by the allegation of fraud, it erred in filing a new proceeding in the High Court, the judgment said.

"What Redcliffe alleges does not constitute a case capable of leading the High Court to set aside the 2004 judgment," it said.

Redcliffe and the other Trinity investors were ordered to pay $15,000 in costs with reasonable disbursements, and reversed a costs order in their favour in the Court of Appeal.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news