Deductibility of Expenses Incurred in a Loss-Making Business

2 Pages Posted: 21 Mar 2010 Last revised: 2 Mar 2016

See all articles by John Prebble KC

John Prebble KC

Victoria University of Wellington, Te Herenga Waka - Faculty of Law; Institut für Österreichisches und Internationales Steuerrecht, Wirtschaftsuniversität Wien; University of Notre Dame Australia - School of Law

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

Prebble KC, John, Deductibility of Expenses Incurred in a Loss-Making Business (1983). Recent Law, p. 57, 1983, Victoria University of Wellington Legal Research Paper No. 25/2016, Available at SSRN: https://ssrn.com/abstract=1570843

John Prebble KC (Contact Author)

Victoria University of Wellington, Te Herenga Waka - Faculty of Law ( email )

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Wellington, 6140
New Zealand
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HOME PAGE: http://www.victoria.ac.nz/law/staff/prebble-scholarly.aspx

Institut für Österreichisches und Internationales Steuerrecht, Wirtschaftsuniversität Wien ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

University of Notre Dame Australia - School of Law

Sydney Campus, New South Wales
Australia

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