“ARC awarded $1.9 million at Privy Council”

February 1, 2001

Chairman of the Auckland Regional Council, Philip Warren, says he is delighted with the ruling that saw the Privy Council in London upholding the Court of Appeal ruling that the ARC be awarded $1.9million plus interest in the Auckland Harbour Board Tax Case against the Inland Revenue Department this week

“This ruling in favour of Auckland’s ratepayers will be of significant benefit to this region in the year to come.”

While the ARC cannot yet confirm the exact amount that it will be refunded from the Inland Revenue Department, interest due will be calculated from the original payment date of July 1995.

Mr Warren explains that this case goes back to 1989 when the Auckland Harbour Board was abolished and the assets and liabilities of the Harbour Board were transferred to the ARC, including tax obligations.

“That year, the IRD assessed $1.9million as being payable from the AHB/ ARC in relation to a base price adjustment issue – an assessment that the ARC objected to,” says Mr Warren.

The IRD disallowed the objection, the ARC paid the tax under protest and took the issue to the High Court.

“In 1998 the High Court ruled in favour of the IRD,” says Mr Warren, “but the ARC appealed to the Court of Appeal.”

In 1999 the Court of Appeal ruled in favour of the ARC on the base price adjustment issue – a ruling that the IRD appealed to the Privy Council.

“Late last year the hearing was held in London, and the Law Lords announced the decision this week.”
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For further information please call:
Philip Warren, Chairman, Auckland Regional Council Tel 09 366 2111
Or for a copy of the judgement, please call Megan Perry on 09 366 2000 extn 7135

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