Calkin v. Commissioner of Inland Revenue
[1984] 1 NZLR 440Calkin
vCommissioner of Inland Revenue
Judges:
Cooke J.
Richardson J.
Somers J
Subject References:
Income tax
Deductions
Misappropriations by agent
Taxpayer had been the victim of a confidence trick and had suffered a nett loss of $89,500
Taxpayer had believed that his money was being used by a person who was acting as his agent to buy and sell various assets for a profit with the agent taking a 10% commission
Agent turned out to be a confidence trickster and the transactions were fictitious
Whether the taxpayer was engaged in a business
Whether there had been an 'undertaking' carried on for pecuniary profit
Whether taxpayer's net loss was deductible for income tax purposes
Whether s 129CF allowed the deduction of a capital loss
Discussion of the distinction between fact and law in tax cases
Legislative References:
Land and Income Tax Act 1954 - ss 2, 111 and 129CF.
Case References:
Inland Revenue (Commissioner of) v Parson - [1968] NZLR 375.
Lowe v Commissioner of Inland Revenue - [1981] 1 NZLR 326
Judgment date: 10 May 1984
Wellington, New Zealand
Appeal dismissed.