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
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
“Air New Zealand Limited’s
request to put this restriction in place was granted by the Court,” the
However, Revenue Management did
acknowledge the outcome of the case will result in the repayment of overpaid
tax to the airline.