Eggers v Commissioner of Inland Revenue - [1988] 2 NZLR 365

Income Tax — Deductions — Farming business — Taxpayer purchased farm land and leased it for three years while he developed it into an economic unit — On expiry of lease he moved on to farm and thereafter farmed it as a full-time business — Whether taxpayer was carrying on business of farming during the period of the lease — Whether farm expenditure incurred during the lease was deductible for tax purposes — Whether interest on capital employed and paid during the lease was deductible for tax purposes — Income Tax Act 1976, ss 104 and 106 (as it stood prior to amendment in 1987).