Quantifiable contingent assets
Contingent assets are potential assets dependent on a particular event occurring. As at 31 March 2010, the Crown held quantifiable contingent assets totalling $274 million ($1,563 million at 31 October 2009).
The major components being:
Inland Revenue - legal proceedings and disputes
Legal proceedings and disputes are contingent assets in relation to Inland Revenue pending assessments. Contingent assets arise where Inland Revenue has advised a taxpayer of a proposed adjustment to their tax assessment. There has been no amended assessment issued at this point or revenue recognised so these are recorded as legal proceedings and disputes - tax. The taxpayer has the right to dispute this adjustment and a disputes resolution process is entered into. Inland Revenue quantifies a contingent asset based on the likely outcome of the disputes process based on experience and similar prior cases.
The reduction in contingent assets is owing to potential interest receivable on the dispute with a number of financial institutions regarding the tax treatment of certain structured finance transactions, which has now been settled.
$199 million at 31 March 2010 ($1,488 million at 31 October 2009)
Ministry of Education - suspensory loans
Suspensory loans issued by the Minister of Education to integrated schools.
$66 million at 31 March 2010 ($69 million at 31 October 2009)
