Commissioner of Inland Revenue v Motorcorp Holdings Ltd and Ors
[2005] NZCA 33CA17/04
(Judgment by: McGrath J)
Between: Commissioner of Inland Revenue - Appellant
And: Motorcorp Holdings Ltd - First Respondent
BMW New Zealand Ltd - Second Respondent
Continental Vehicle Distributors Ltd - Third Respondent
German Motor Distributors Ltd - Fourth Respondent
Daimler Chrysler New Zealand Ltd - Fifth Respondent
European Motor Distributors New Zealand Ltd - Sixth Respondent
Schofield and Co Ltd - Seventh Respondent
Hyundai Automotive New Zealand Ltd - Eighth Respondent
Scandinavian Vehicle Distributors Ltd - Ninth Respondent
Judges:
McGrath JHammond J
William Young J
Judgment date: 7 March 2005
Judgment by:
McGrath J
[1] I adopt the statement of background facts set out in the judgment of Hammond J. I also agree with Hammond J, for the reasons he gives, that the warranty arrangements between the appellants and the overseas manufacturers of the motor vehicles they import, are not in the nature of insurance, and do not give rise to contracts of insurance, in terms of the definition of "Insurance" in s 2 of the Goods and Services Tax Act 1985.
[2] I have however also concluded that s 5(13) of the Act, on its terms, does not apply, so that the appeal should be allowed for the reasons given by William Young J in his judgment.
[3] I agree with Hammond J, for the reasons he gives, which are closely similar to those of William Young J, that the cross appeal should be dismissed.
[4] I have considered submissions made at the hearing by the respondents in relation to costs should the appeal be successful but see no reason why costs in this Court or in the High Court should not follow the normal course, in the terms set out in Hammond J's judgment.