Jennings Roadfreight Limited v Commissioner of Inland Revenue

[2014] NZSC 2

IN THE SUPREME COURT OF NEW ZEALAND

SC 118/2013
[2014] NZSC 2

BETWEEN

JENNINGS ROADFREIGHT LIMITED (IN LIQUIDATION)
First Applicant

BORIS VAN DELDEN AND ROY HORROCKS AS LIQUIDATORS OF JENNINGS ROADFREIGHT LIMITED (IN LIQUIDATION)
Second Applicant

AND

COMMISSIONER OF INLAND REVENUE
Respondent

Court:	McGrath, William Young and Arnold JJ
Counsel:	A W Johnson and C C Mansell for Applicants P H Courtney and C I J Fleming for Respondent
Judgment:	14 February 2014

JUDGMENT OF THE COURT

A.Leave to appeal is granted.

B.The approved ground for appeal is whether:

(a)the trust arising under s 167(1) of the Tax Administration Act 1994 continues in existence upon the liquidation of a company, in respect of funds held in the company’s account; or

(b)the trust is extinguished upon the liquidation, so that the funds held are dealt with in accordance with Schedule 7 of the Companies Act 1993.

____________________________________________________________________

Solicitors:
Martelli McKegg, Auckland for First and Second Applicants
Crown Law Office, Wellington for Respondent