Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


High Court backs NZ Immigration Service

High Court backs NZ Immigration Service

Immigration Minister Lianne Dalziel today welcomed a recent High Court decision, which she says confirms that an investment scheme, involving the borrowing of a million dollars by a Chinese businessman seeking New Zealand residence, does not meet government business residence policy.

“It was always just a matter of time before one of the cases ended up in court and I am pleased that the NZ Immigration Service’s rejection of this scheme has been upheld,” Lianne Dalziel said.

The High Court found that the substance of the scheme designed by Pacrim International Capital Inc (Pacrim) was “the plaintiff ‘buying’ or even literally ‘borrowing’…a qualifying investment in New Zealand nominally in his name, rather than effectively making an investment himself”.

The plaintiff was a client of Pacrim International Capital Inc (Pacrim), however it was indicated to the court that Pacrim did not want to become a party to the proceeding.

“The effect of this scheme would have circumvented the policy requirements that the investment funds be linked directly to specific nominated foreign assets (which must have been lawfully acquired) and that applicants must retain full ownership and control of their investment funds. These requirements are intended to ensure that applicants seeking residence through the business investor category are prepared to commit their foreign capital to New Zealand.”

The High Court noted that the nub of the plaintiff’s argument “was that the NZIS had erred in looking at the substance rather than the form of the transaction”.

“That is perhaps something of a concession that, in substance, the transactions did not comply with the policy”. The High Court accepted that this particular investment scheme was uncommercial and/or unusual in several respects.

Regarding criticism of the NZIS’s processes in dealing with the application the Judge stated that the NZIS “went to some considerable lengths to outline its concerns to the plaintiff, and subsequently to his solicitor and to give plaintiff the opportunity to satisfy it that he complied with the policy”.

The Judge held that “the NZIS’s approach was lawful and legitimate, and that it took into account relevant factors and excluded irrelevant ones”.

Lianne Dalziel said that the case set an important precedent, and that it would assist in the consideration of other investor applications based on schemes of this nature or with similar characteristics.

“Applicants will still be given the opportunity to meet the NZIS’ requirements of the investor category as confirmed by the High Court, however, if they are effectively ‘buying’ or ‘borrowing’ their investment funds as in this case, they will not satisfy the policy requirements,” she said.

The investor category has been under review over the past several months, and the Minister indicated that the government would be considering adjustments to the policy this year.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news