Tag: BNZ Investments Ltd

New Zealand vs BNZ Investments Ltd, July 2009, HIGH COURT

New Zealand vs BNZ Investments Ltd, July 2009, HIGH COURT

The case: Is each of six similar structured finance transactions entered into by the plaintiffs (the BNZ) a ‘tax avoidance arrangement’ void under s BG 1 Income Tax Act 1994? That is the primary issue in these five consolidated proceedings brought by the BNZ against the Commissioner, challenging his assessments issued after he voided each of the transactions pursuant to s BG 1. The BNZ claims the transactions are not caught by s BG 1. A second issue, arising only if s BG 1 applies, is the correctness of the way in which the Commissioner has, pursuant to s GB 1, counteracted the tax advantage obtained by the BNZ under the transactions. The Commissioner disallowed the deductions claimed by the BNZ, as its costs of the transactions. The BNZ claims the deductions should be disallowed only to the extent they are excessive or ‘overmarket’. A third, and perhaps strictly antecedent, issue is whether the guarantee arrangement fee (GAF) or guarantee ... Continue to full case