On 21 July 2022, the New Zealand Inland Revenue published Interpretation Statement on tax loss carry-forward rules for Consultation. The consultation period is from 21 July 2022 to 1 September 2022.
This interpretation statement provides guidance on how the main aspects of the business continuity test in s IB 3 of the Income Tax Act 2007 apply. The business continuity test may enable a company to carry forward tax losses despite a breach in ownership continuity if certain requirements are satisfied.
This draft item was previously consulted from May to June 2021. Due to the number of changes to the item and the inclusion of several remedials in the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022, the item is being re-consulted.
