Case: Commissioner of Inland Revenue v Nancy Lois Roberts [2019] NZCA 654
Summary: This was an appeal of the High Court’s decision that Nancy Lois Roberts’ forgiveness of debt was a “charitable or other public benefit gift” within s LD 3(1)(a) of the Income Tax Act 2007 (the ITA) qualifying her for a donation tax credit (Nancy Lois Roberts v Commissioner of Inland Revenue [2018] NZHC 2153).
The Court of Appeal upheld the High Court’s decision and found that:
For the purposes of s LD 3(1)(a), the term “monetary” means “of or pertaining to money”;
In this context, “monetary” is not limited to include only cash, credit cards, cheques and bank transfers as the Commissioner submitted;
In this context, “monetary” also includes a right to receive cash, such as sums standing to the credit of a bank account, or invested in securities; and
Mrs Roberts’ forgiveness of debt was a monetary gift that was paid.
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