Auckland property developer Andrew Krukziener has failed in his appeal against a Taxation Review Authority ruling that $5 million of loans were taxable income.Mr Krukziener, who is best known for building the Metropolis skyscraper in central Auckland, has
Auckland property developer Andrew Krukziener has failed in his appeal against a Taxation Review Authority ruling that $5 million of loans were taxable income.
Mr Krukziener, who is best known for building the Metropolis skyscraper in central Auckland, has been in a long-running battle with the taxman over his commercial activities.
Between 1991 and 2002 he operated through a group of companies and trading trusts, completing a number of successful developments but receiving only a modest salary.
However, he received just over $5 million through current accounts with companies and trusts in his group.
Mr Krukziener said he received these funds as loans and was not required to pay income tax on them.
But the TRA agreed with the IRD’s view that they were part of a tax avoidance arrangement and should be reconstructed as income, leaving him liable for both income tax and penalties.
In his High Court appeal Mr Krukziener argued that the TRA took the wrong approach in determining what constitutes an ‘arrangement’ and that even if there was an arrangement, tax avoidance wasn’t its aim or effect.
Justice Patricia Courtney was not convinced, upholding the TRA decision.
Mr Krukziener wouldn’t comment when contacted by the National Business Review this morning.
