Forgery: Lopes v. Police

Valuer Gary Lopes’ appeal seeking discharge without conviction for forgery was dismissed in the High Court.  Lopes forged Wagyu Breeders Association minutes in an unsuccessful attempt to access funds held in a dormant bank account.

The High Court was told the forgery followed Lopes failed attempts to merge dormant Wagyu Breeders Association with a similar organisation: New Zealand Wagyu Association.  Wagyu Breeders had been deregistered in 1997, five years after its formation.  Just over $20,000 was left sitting in its bank account, the bulk on term deposit.  Wagyu’s bank required proof Lopes was an officer of the Association before it would provide details.  Lopes became a signatory after presenting forged Breeders Association minutes of a fictitious meeting which listed his appointment as president.  Named as secretary was his almost-blind mother.  She signed the minutes.  Trying to access the account, Lopes found nearly all the funds were on term deposit.  He signed two cheques as a ‘test’ to see if they would clear.  Neither did.

Lopes told the court conviction could lead to his de-registration as a valuer by the Valuers Registration Board.  He has been registered since 1988.  The offending was clearly deliberate, Justice Woolford said.  Potential deregistration is not a wholly disproportionate outcome for this offending.

Lopes was sentenced to180 hours community service.

Lopes v. Police – High Court (4.11.17)

18.017

Maori: re Tipene

Maori customary marine title can be held ex officio and does not need be registered to a named individual the High Court ruled when appointing those who are Supervisors for the time being of the Titi (Muttonbird) Islands Regulations as holders of a Stewart Island customary right.

Customary marine title is a Maori communal right, not a private property right.  Rakiura Maori have recognised customary rights to take muttonbird from Pohowaitai and Tamaitemioka islands off Stewart Island.  These rights extend out to sea in a 200 metre radius from the only landing point on the islands.  The Marine and Coastal Area Act requires registration of  ‘a name’ identifying who holds any customary title.  Government lawyers said this requires a named individual.  Justice Mallon disagreed.  A single person need not be named.  It could be individuals, changing from time to time, who have been voted into office, she ruled.

The 1978 Titi Regulations lay down rules for the management and control of muttonbirding on the islands.  They set out procedures for supervisors’ election by Rakiura Maori.  Supervisors decide a fair and equitable distribution of birds harvested.  Current supervisors are willing to hold the customary marine title, she said.  Any enquiries about the Titi Islands customary right can be directed to the Titi Committee’s contact address.

Re Tipene – High Court (4.11.17)

18.018

Tax: NRS Media v. Inland Revenue

The High Court signalled general tax deductibility rules can apply for costs incurred by NZ registered companies having offshore subsidiaries.

Registered to a bucolic address in the quiet Wairarapa town of Greytown, NRS Media Holdings Ltd has world-wide interests facilitating sales of media space.  Deductibility of Sydney head office expenses was challenged by Inland Revenue: $1.7 million claimed for the financial year ended December 2010; $1.9 million for December 2011.  Corporate costs included rent, salaries for six staff plus the travel and accommodation costs for senior staff.  NRS Media said it could claim the benefit of a tax rule, since repealed, that allowed companies receiving an exempt dividend from foreign companies to deduct expenditure in deriving that dividend.  Director Doug Gold said head office ensured the value of its business and profitability was maximised by monitoring financial controls and management reporting at its overseas trading subsidiaries.

Justice Clark ruled these expenses were not deductible.  The primary reason for these expenses was to improve the subsidiary's performance and profitability.  A possible consequence of these expenses for NZ-based NRS Media was receipt of foreign dividends.  There was no direct link between this expenditure and the potential receipt of dividends from its subsidiaries sufficient to satisfy the now repealed tax provision.  
But deductions for expenditure monitoring offshore subsidiaries could fall within the broader general category of expenditure incurred ‘in the course of carrying on a business for the purpose of deriving income’ she said.  This broader general rule in the Income Tax Act does not require a direct positive link between expenditure incurred and income received.   

NRS Media Holdings Ltd v. Inland Revenue – High Court (1.12.17)

18.016