Category: Volume 14 Issue 1

In 2007, David Beckham was in New Zealand to play an exhibition football match. While in Wellington, he dined at Nando’s restaurant. Moments after finishing his meal a mystery diner swiped the football star’s scraps and cutlery. The items were subsequently listed for sale on online auction site Trade Me. This article considers whether profits derived by the enterprising diner from this isolated transaction may be assessable under the Income Tax Act 2007 (NZ). Specifically, the article focuses on the application of s CB 32 (Property obtained by theft), s CB 4 (Personal property acquired for purpose of disposal), and s CB 3 (Profit-making undertaking or scheme). The article concludes that the intrepid diner may be subject to tax on her profits under two of these provisions.

This article considers taxation from a perspective of democratic discourse and uses propositions for hypothecated taxes to illustrate transparency and government accountability. First, contemporary sovereignty in relation to taxation is sketched. Michel Foucault’s concept of ‘governmentality’ and its principal implications for taxation are taken into account. Second, Jürgen Habermas’s model of discursive democracy is outlined. Third, the principle of accountability and the practice of transparency are outlined. It is concluded that hypothecation is unlikely to enhance accountability in taxation, which, from a perspective of discursive democracy, should be pursued through an open and honest discourse between accountable government and its citizens.

The Aaronson report released in the United Kingdom in late 2011 addressed the need for a general anti-avoidance rule to be introduced into that jurisdiction’s tax legislation. In considering the design of such a rule, the need to maintain certainty from the perspective of the taxpayer was given paramount importance. This paper draws upon the experiences with a general anti-avoidance rule in Australia, New Zealand and Canada, highlighting the uncertainty that such a rule has historically introduced into a nation’s tax system.