IS 21/04
Issued
29 Jun 2021

Income tax and GST deductions for businesses disrupted by the COVID-19 pandemic

This Interpretation Statement considers whether a business can claim an income tax deduction for expenditure or loss incurred where the business has downscaled or stopped operating because of the COVID-19 pandemic.  It also briefly considers the GST implications of these events.

Income Tax Act 2007 – ss DA 1, DA 2, DC 1, DC 2, DC 10, YA 1 (“business”)
Goods and Services Tax Act 1985 – ss 5, 6, 52
Tax Administration Act 1994 – s 6I

AAA Developments (Ormiston) Ltd v CIR (2015) 27 NZTC 22,026 (HC)
Buckley & Young Ltd v CIR (1978) 3 NZTC 61,271 (CA)
Calkin v CIR (1984) 6 NZTC 61,781 (CA)
Case F31 (1983) 6 NZTC 59,712 (TRA)
Case F73 (1983) 6 NZTC 59,931 (TRA)
Case F131 (1984) 6 NZTC 60,200 (TRA)PUBLICATION # | Issue date
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[UNCLASSIFIED]
Case G8 (1985) 7 NZTC 1,021 (TRA)
Case H63 (1986) 8 NZTC 460 (TRA)
Case J2 (1987) 9 NZTC 1,004 (TRA)
Case J78 (1987) 9 NZTC 1,459 (TRA)
Case L19 (1989) 11 NZTC 1,125 (TRA)
Case L89 (1989) 11 NZTC 1,508 (TRA)
Case M68 (1990) 12 NZTC 2,384 (TRA)
Case U29 (2000) 19 NZTC 9,273 (TRA)
CIR v Banks (1978) 3 NZTC 61,236 (CA)
CIR v Mitsubishi Motors NZ Ltd (1995) 17 NZTC 12,351 (PC)
Europa Oil (NZ) Ltd v CIR (No 2) (1974) 1 NZTC 61,169 (CA)
FCT v James Flood (1953) 88 CLR 492 (HCA)
Grieve v CIR (1984) 6 NZTC 61,682 (CA)
Inglis v FCT (1980) 80 ATC 4,001 (FCA)
Queensland Meat Export Co Ltd v FCT (1939) 4 ATD 176 (QSC)
Slater v CIR (1996) 17 NZTC 12,453 (HC)
Wakelin v CIR (1997) 18 NZTC 13,182 (HC)