Stevens v Commissioner of Inland Revenue - [1989] 1 NZLR 404

Income tax — Deductions — Business expenses — Taxpayer acquired rights to a patented lifebelt, solicited orders and arranged for manufacture overseas — Manufacturer failed to produce the goods and the orders were not fulfilled — Taxpayer claimed travelling and other expenses as deductions from his assessable income — Commissioner disallowed those deductions — Whether expenses were incurred by taxpayer in connection with the carrying on of a business for the purpose of producing assessable income — Whether expenses were deductible — Income Tax Act 1976, s 104(b).

Income tax — Deductions — Interest — Taxpayer borrowed money to invest in investment company — Initially he returned as income dividends received from the company and claimed as a deduction the interest paid on the borrowed money — Commissioner allowed deduction — Subsequently investment company did not make a profit but taxpayer continued to claim the interest as a deduction — Commissioner disallowed deduction — Whether interest was deductible — Income Tax Act 1976, s 106(1)(h)(i).