29 Mar 2007
ZETA ESTATES LTD v. COMMISSIONER OF INLAND REVENUE
- Citation
- ZETA ESTATES LTD v. COMMISSIONER OF INLAND REVENUE
- Court
- Court of Final Appeal
- Case number
- FACV15/2006
Where shareholders' loans were taken to replace retained profits that were tied up in profit‑earning assets and were necessary to avoid selling those assets (thereby maintaining the company's profit‑producing capacity), the interest on those loans was incurred in the production of profits and deductible under s.16(1)(a); s.16(1)(a) should not be read to require borrowings be raised wholly and exclusively for producing profits.