Privy Council.

Judgment delivered 5 March 1986.

Privy Council – Income tax – Fiji – Limited liability company – Loan to finance purchase of shares – Management fees paid to taxpayer – Interest paid to bank in respect of loan claimed as deductible expense in company accounts – Deduction disallowed – Whether interest on bank loan allowable as deduction in computing profits – Income Tax Act (Cap. 201) (Fiji) sec. 17(37), 19(f)(i)(ii).

  This was an appeal against the disallowance of a tax deduction in respect of the payment of interest incurred on moneys borrowed by the taxpayer to finance the purchase of certain shares.

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