Title: Appellate Court Responsibilities and Tax Avoidance
Abstract: The subject raises two questions for consideration: the interpretation of tax legislation, and the characterisation of transactions for tax purposes. This paper briefly outlines the problems of drafting tax legislation, before describing the different judicial approaches to interpretation of tax legislation, including the scheme and purpose approach of New Zealand courts. In considering when the scheme and purpose of the legislation will necessitate re-characterisation of transactions for income tax purposes, there is a discussion of the business purpose requirement, and an analysis of the tax effect of the assignment of personal exertion income to a third party. Concerning the manner in which the character of a transaction is to be determined at law, the paper provides a discussion on form and substance, analysing the English ‘fiscal nullity’ approach and its reception in other jurisdictions, and concluding that such an approach must be firmly grounded in the scheme and purpose of the legislation.
Publication Year: 1985
Publication Date: 1985-01-01
Language: en
Type: article
Access and Citation
Cited By Count: 9
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