EMI Manufacturing (NZ) Ltd v Collector of Customs - [1984] 2 NZLR 326

Revenue — Sales tax — Sound recordings — "Fair market value" — "Open market" — EMI Manufacturing manufactured recordings for retailers holding copyright and sales tax of 80 cents was paid on these recordings — It also manufactured recordings for licensed wholesalers holding copyright and sales tax of $2.14 was paid on these recordings — This difference was reflected in the price to the consumer — Collector of Customs claimed that recordings sold by EMI Manufacturing to retailers holding copyright were sales made in circumstances having the effect of reducing the sale price below "fair market value" and he was entitled to assess sales tax at $2.13 (ie, by taking the retail price of goods sold through licensed wholesalers by ordinary retailers and deducting the retailers' mark-up to obtain a wholesale price on which to assess sales tax) — Whether reassessments were valid — Sales Tax Act 1974, ss 19(1) and 26(b) (as originally enacted).