Smart & Clever
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Title: Smart & Clever

Essay Details:

Subject: Business
Author: Katie M
Date: February 15, 2016
Level: University
Grade: A
Length: 8 / 2188

Essay text:

Company shares are a form of personal property for the purposes of IT04 ss CB 2, CB 3, CB 4 as s OB 1 defines personal property in relation to ss CB 3 and CB 4 as not including land or an interest in land personal property lease asset and means any personal property subject to a lease; and does not include any livestock or bloodstock. In the case of C of IR v National Distributors Ltd (1989) 11 NZTC 6,346 (CA) the tests to apply when determining whether shares were acquired for the purpose of resale were considered. The key issues to come out this case are - was the taxpayers dominant purpose in acquiring the shares was that of resale - knowledge that the shares would not be owned for ever did not by itself make proceeds from a subsequent sale taxable - a taxpayer who buys shares for no specific purpose other than general financial benefit will satisfy the onus of proving resale was not the main purpose of purchase In applying these facts to Gary's case it would appear that Gary is not in the business of buying and selling and that he brought them with no specific purpose other than general financial benefit...

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