Pacific Rendezvous Ltd v Commissioner of Inland Revenue - [1986] 2 NZLR 567

Income tax — Deductions — Interest — Loan to effect improvements in business — Dual purpose to increase capital and income — All of the loan funds were used in the production of assessable income — Commissioner allowed one-quarter of the interest paid to be deducted for tax purposes — Whether Commissioner was empowered to apportion the interest — Whether, if apportionment was available, the apportionment was correct — Income Tax Act 1976, s 106(1)(h)(i).