Commissioner of Inland Revenue v Dick - [2002] 2 NZLR 560

Trusts and trustees — Express trust — Instigator of creation of trust not settling capital on trust but performing numerous services — Income Tax Act 1976, ss 61(27) and 226(9).

Trusts and trustees — Charitable trusts — Whether benefit or income provided to settlor or trustees — Trust unable to apply income to charitable purposes for two years — Whether funds charitable — Income Tax Act 1976, ss 61(27) and 226(9).

Revenue — Income tax — Whether foundation exempt from tax — Whether foundation charitable — Whether businesses providing income to foundation exempt from tax — Whether settlor and trustees able to obtain income or benefits from foundation — Whether payment to overseas body for services provided to New Zealand charity applied to charitable purposes outside New Zealand — Income Tax Act 1976, ss 61(27), 226(9) and 228(4).

Revenue — Practice and procedure — Whether Taxation Review Authority entitled to allow application for discovery during hearing — Appropriate action by Commissioner when charitable trust makes payment in breach of trust — Taxation Review Authorities Regulations 1998 (SR 1998/460), reg 12.