Govind Prasad Saha v Commissioner of Inland Revenue - SC 24/2009

Civil appeal – application of the foreign investment fund rules contained in Part CG of the Income Tax Act 1994 – the appellant was a partner in a firm that sold its consultancy business to a French company – as part of the sale transaction the appellant agreed to work for the consultancy business for five years from the date of settlement – as part of the sale transaction the appellant received a package of shares in the French company to be gradually released to him over a five year period – the appellant ended his employment in the consultancy business prematurely – the resulting deed of settlement provides that 50% of the unreleased shares will be transferred to the French company – whether the transfer of shares is a “disposition” for the purpose of s CG 23(5) – whether the appellant derived a gain in kind from the transfer of shares for the purposes of s CG 14(2)[2009] NZCA 76 CA 617/2008