Alesco New Zealand Ltd v Commissioner of Inland Revenue - [2013] 2 NZLR 175

Revenue — Tax avoidance — Issue by New Zealand subsidiary of optional convertible notes to Australian parent — Income tax deductions claimed for notional interest liability — Whether arrangement constituted tax avoidance — Whether comparative or counterfactual analysis to be undertaken in determining whether income tax avoided or reduced — Relevance of financial arrangement rules and Commissioner's determination — Assessment counteracting impermissible deductions — Whether Commissioner obliged to reconstruct alternative funding arrangement — Shortfall penalties — Whether taxpayer took unacceptable tax position or abusive tax position — Tax Administration Act 1994, ss 90, 141B and 141D.