By NAOMI LARKIN
An Auckland couple have lost their High Court tax battle with the Inland Revenue Department.
Tuhi Collins and Beverley Hunter took the department to court this month, claiming they had been dealt with unfairly and appealing against an IRD decision to put them into bankruptcy after their $50,000 tax debt soared to $200,000 with penalties.
In his judgment released yesterday, Justice Robertson turned down their appeal and upheld the bankruptcy. However, he said the case "highlights the harsh and unrelenting consequences which can flow from the penalty regime of the tax legislation."
Parliament had decided on the 10 per cent penalty to be added every six months. That policy was clear, unambiguous and "not a matter available for assessment or consideration by the courts."
Likewise, Inland Revenue Commissioner Graham Holland and his officials were bound by the statutes.
Justice Robertson made no order for costs.
Couple lose tax battle with IRD
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