Volume 14, Issue 1 – Maples

ONLINE SALES AND AUCTION SITES, ISOLATED TRANSACTIONS AND THE INCOME TAX ACT 2007 (NZ)

By Andrew Maples

In 2007, David Beckham was in New Zealand to play an exhibition football match. While in Wellington, he dined at Nando’s restaurant. Moments after finishing his meal a mystery diner swiped the football star’s scraps and cutlery. The items were subsequently listed for sale on online auction site Trade Me. This article considers whether profits derived by the enterprising diner from this isolated transaction may be assessable under the Income Tax Act 2007 (NZ). Specifically, the article focuses on the application of s CB 32 (Property obtained by theft), s CB 4 (Personal property acquired for purpose of disposal), and s CB 3 (Profit-making undertaking or scheme). The article concludes that the intrepid diner may be subject to tax on her profits under two of these provisions.

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