Just Juice just misses $3M back-tax

Press, 17 January 1986, Page 2

Just Juice just misses $3M back-tax

PA Wellington The Apple and Pear Board will not have to pay about $3 million in backdated sales taxes on its Just Juice product, says the Minister of Customs, Mrs Shields. The Customs Department had sought the tax as it said the juice had been marketed as pure fruit juice when it contained additives. But the board had said its product was not liable for the tax, and it had asked Mrs Shields to make a decision as to whether the juice was exempt. In her decision released yesterday, Mrs Shields said legal advice showed there was some doubt as to whether the Food and Drugs Act, 1969, or the Food and Drug Regulations, 1973, both applied to sales tax liability. The exemption was tied solely to the regulations. Just Juice was not made

contrary to those regulations, whatever might have been the position of the product in relation to the act, she said. “Accepting that there is a fine distinction in the relationship of the various pieces of legislation applicable, I have decided that Just Juice was exempt from sales tax for the period prior to February, 1984.” That decision observed normal practice that taxation must be precise and interpreted in favour of a taxpayer in any matter of doubt, she said. Mrs Shields said she had instructed her department to withdraw the sales tax claim. She said that all Customs Department consideration of the case had been done in accordance with sales tax policy and practices. There was no ground for criticism of its actions.