IS 20/03
Issued
15 Jun 2020

Income tax – sections GB 3B and GB 4 of the Income Tax Act 2007 – temporary loss carry-back regime

The COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 introduced a temporary loss carry-back regime into the Income Tax Act 2007 as part of changes made because of COVID-19. The temporary loss carry-back regime enables a business to carry-back and offset a loss in a particular year against its taxable income for the 2018–19 or 2019–20 income years and receive a refund of any tax paid. This interpretation statement considers the potential application of the specific anti-avoidance provisions relevant to companies using the temporary regime (that is, the new s GB 3B and the amended s GB 4). 

See the legislation article Public 2020 No 8 and No 10 on the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 and COVID-19 Response (Further Management Measures) Legislation Act 2020.

Tax Information Bulletin Vol 32 No 6 - July 2020

COVID-19 Response (Taxation and Primary Industries Urgent Measures) Act 2020
Goods and Services Tax Act 1985, s 76
Income Tax Act 1976, s 64J(1)
Income Tax Act 2007, ss BG 1, GA 1, GB 3B, GB 4, GB 21, IZ 8, YA 1 (“arrangement”)

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Auckland Harbour Board v CIR (2001) 20 NZTC 17,008 (PC)
Ben Nevis Forestry Ventures Ltd v CIR [2008] NZSC 115 (SC)
BNZ Investments Ltd v CIR (2000) 19 NZTC 15,732 (HC)
Ch’elle Properties (NZ) Ltd v CIR (2004) 21 NZTC 18,618 (HC)
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