structured finance tagged posts
October 9, 2009 New Zealand Taxation
The Inland Revenue Department (IRD) has won its tax evasion case against Westpac Banking Corp, resulting in a NZ$918 million fine for the bank.
The New Zealand High Court made a decision to dismiss Westpac’s challenge to IRD’s decision that the bank owes $586 million in taxes for a series of structured finance transactions. The IRD claimed that between 1998 and 2002 the bank undertook a series of offshore transactions whose sole purpose was tax evasion. The court proceedings centered around nine such transactions, ranging between $390 million to $1.5 billion. Westpac has stated they may appeal the decision upon review of the judgment.
Westpac is currently liable for $918 million, $332 million of which consists of interest charged by the IRD on taxes unpaid...Read More
An appeal will be filed to the High Court’s decision regarding its judgment of BNZ and its structured finance accusations.
According to statements made on the 11th of August by Andrew Thorburn, BNZ Chief Executive Officer, the bank will be filing an appeal to last month’s High Court decision. He said “This is a complex area of law, and given the facts of the case, we’re not convinced that the decision was the right outcome.”
The IRD accused the bank of engaging in six separate “structured finance” operations which, according to the IRD, held no commercial utility beyond the lowered taxation liability which resulted for BNZ...Read More