Deductibility of Expenses Incurred in a Loss-Making Business
Recent Law, p. 57, 1983
Victoria University of Wellington Legal Research Paper No. 25/2016
2 Pages Posted: 21 Mar 2010 Last revised: 2 Mar 2016
Date Written: 1983
Abstract
A comment on the case of Grieve v Commissioner of Inland Revenue (1982) 5 NZTC 61,145. The taxpayer had run a loss-making business which he had continued to deduct from other income. Eventually, the Commissioner decided to disallow further deductions. The court upheld the Commissioner’s decision, finding that a reasonable prospect of a profit must exist. The decision was upheld on appeal in the case of the same name, (1984) 1 NZLR 101.
Keywords: Loss-making deductions to income tax, Income Tax Act 1976, Deductibility
JEL Classification: K34
Suggested Citation: Suggested Citation