Practical Problems from Publication of the Commissioner’s Interpretation Guidelines

Victoria University of Wellington Working Paper No. 8, Centre for Accountancy, Governance and Taxation Research, Wellington

21 Pages Posted: 15 May 2010 Last revised: 10 Apr 2015

See all articles by John Prebble KC

John Prebble KC

Victoria University of Wellington, Te Herenga Waka - Faculty of Law; Institut für Österreichisches und Internationales Steuerrecht, Wirtschaftsuniversität Wien; University of Notre Dame Australia - School of Law

Date Written: 2003

Abstract

This paper addresses the issue of the several kinds of statements issued by the New Zealand Commissioner of Inland Revenue, in particular focusing on policy statements and interpretation guidelines. These statements are essentially legal opinions but unlike binding rulings, these are not binding. The paper addresses a New Zealand Inland Revenue exposure draft of an interpretation guideline on form and substance. The draft contains, in effect, instruction on legal reasoning. The article argues that an exposure draft is not an appropriate vehicle for that purpose. The paper also examines the New Zealand Inland Revenue interpretation guideline on shams, and the department’s policy statement on s 99 of the Income Tax Act 1976, the New Zealand general anti-avoidance rule, questioning whether the approach of issuing policy statements on general anti-avoidance is sound tax administrative practice. While conceding the difficulties arising from inconsistency in jurisprudence in tax cases, the paper asserts the need for certainty to generate efficiency in decision making.

Keywords: Anti-avoidance, Tax Reform, Income Tax Act 1976, New Zealand, general anti-avoidance rule, sham revenue rulings.

JEL Classification: K34

Suggested Citation

Prebble KC, John, Practical Problems from Publication of the Commissioner’s Interpretation Guidelines (2003). Victoria University of Wellington Working Paper No. 8, Centre for Accountancy, Governance and Taxation Research, Wellington, Available at SSRN: https://ssrn.com/abstract=1604980

John Prebble KC (Contact Author)

Victoria University of Wellington, Te Herenga Waka - Faculty of Law ( email )

PO Box 600
Wellington, 6140
New Zealand
+64 4 463 6311 (Phone)
Papers Indexed at HOME PAGE (Fax)

HOME PAGE: http://www.victoria.ac.nz/law/staff/prebble-scholarly.aspx

Institut für Österreichisches und Internationales Steuerrecht, Wirtschaftsuniversität Wien ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

University of Notre Dame Australia - School of Law

Sydney Campus, New South Wales
Australia

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