Commissioner of Inland Revenue v McKenzies (NZ) Ltd - [1988] 2 NZLR 736

Income tax — Deductions — Payment made by lessee on surrender of lease — Lessee sought surrender of remaining term of 38 years of lease and paid lessor $190,000 by way of consideration for surrender — Whether the lease was part of the capital assets of the lessee — Whether payment for surrender was a capital payment — Whether payment was a commutation of future rental obligations — Whether payment was deductible — Income Tax Act 1976, ss 80, 104, 106 and 137.