Interpretation of Revenue Statutes – Trading Rebates
Recent Law, Vol. 10, pp. 183-184, 1984
3 Pages Posted: 25 Mar 2010
Date Written: June 1984
Abstract
Commissioner of Inland Revenue v. New Zealand Plumbers’ Merchants Society Ltd. (1983) 6 NZTC 61,632, 6 TRNZ 489 (HC) concerned the interpretation of section 167A of the Income Tax Act 1976 concerning the deduction of trading stock rebates from income.
Although the case is limited to interpretation of a provision only in force for the 1978 tax year, the common sense interpretation adopted by Quilliam J. was precedent-setting. Quilliam J. was over-turned by the Court of Appeal (1986) 8 NZTC 5,136, but the Court of Appeal did not directly comment on the validity of his approach to interpretation.
Keywords: Mutuality principle, tax law, statutory interpretation, rebates, strict approach, presumption in favour of taxpayer
JEL Classification: K34
Suggested Citation: Suggested Citation