Calkin v. Commissioner of Inland Revenue

[1984] 1 NZLR 440

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Calkin
vCommissioner of Inland Revenue

Court:

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

Hearing date: 3 February 1984
Judgment date: 10 May 1984

Wellington, New Zealand

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Appeal dismissed.