NZTCRA rejects argument that an interest amount paid under a relationship property agreement was deductible as an expense under the Income Tax Act 2007
Mr A sought to deduct interest expenses of $18,069.31 in his 2016 income tax return. This amount related to interest Mr A was required to pay his ex-wife under a relationship property agreement. The Authority held there was an insufficient nexus between the interest payments and Mr A’s assessable income and disallowed the deduction.
Income Tax Act 2007, ss DB 6, DA 1, and DA 2(2)
Public Trustee v Commissioner of Taxes [1938] NZLR 436 (CA)
Williams v Commissioner of Inland Revenue (1988) 10 NZTC 5,078 (HC)
Fahey v MSD Speirs Ltd [1975] 1 NZLR 240 (PC)
Re Securitibank Ltd (No 2) [1978] 2 NZLR 136 (CA)
Colonial Mutual Life Assurance Society Ltd v Commissioner of Inland Revenue (2000) 19 NZTC 15,614 (CA)
Pacific Rendezvous Ltd v Commissioner of Inland Revenue [1986] 2 NZLR 567 (CA)
Eggers v Commissioner of Inland Revenue [1988] 2 NZLR 365 (CA)
Commissioner of Inland Revenue v Brierley [1990] 3 NZLR 303 (CA)
Reid v Commissioner of Inland Revenue (1990) 12 NZTC 7,153 (HC)
Commissioner of Inland Revenue v Haenga [1986] 1 NZLR 119 (CA)