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Air NZ acknowledges court case outcome

Tuesday 30 August 2022 | Written by Caleb Fotheringham | Published in National

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Air NZ acknowledges court case outcome
An Air New Zealand flight heading back to Auckland from Rarotonga. – 22070305/Melina Etches

Air New Zealand acknowledges the outcome of the High Court that has resulted in Cook Islands Revenue Management owing the airline money.

Following questions from Cook Islands News on the case, an Air New Zealand spokesperson said the High Court of the Cook Islands concluded the airline was incorrectly taxed in the Cook Islands on certain payments it received from the Cook Islands Government. 

“This decision re-enforces the international tax rules around the taxation of international airlines. All income Air New Zealand receives from the Cook Islands Government is subject to taxation in New Zealand,” the spokesperson said.

The amount that Cook Islands Revenue Management owes is still unknown.

A previous statement from the Revenue Management Division said access to the case files were “restricted and not publicly accessible”.

“Air New Zealand Limited’s request to put this restriction in place was granted by the Court,” the statement said.

However, Revenue Management did acknowledge the outcome of the case will result in the repayment of overpaid tax to the airline.