King and Another v Commissioner of Inland Revenue - [1974] 2 NZLR 190

Income tax — Capital expenditure or deductible income — Money borrowed from State Advances Corporation — Contribution of two percent of loan to General Reserve Fund as required by State Advances Corporation Act 1965, s 27, added to mortgage principal — Contribution deductible as "expenditure incurred" in borrowing money employed as capital in the production of income — Land and Income Tax Act 1954, s 121.