When a disposal of land will be part of a profit-making undertaking or scheme subject to income tax under s CB 3

This interpretation statement considers whether disposals of land can be subject to income tax under s CB 3 (Profit-making undertaking or scheme) or whether the land sale rules in the Income Tax Act 2007 are a code that comprehensively covers when land disposals are taxed.  This interpretation statement concludes that s CB 3 can apply to tax disposals of land and provides guidance on when this may be the case.

This interpretation statement was previously consulted as a ‘questions we’ve been asked’ in December 2024 and received a range of submissions.  After considering that feedback, we have refined our view on how s CB 3 applies.  The ‘Notes | pitopito kōrero’ section on the front page of the item provides information about our refined views.  Due to the more comprehensive nature of the analysis and guidance in this updated version, it has been converted to an interpretation statement.