Income Tax – deductibility of costs incurred due to COVID-19
This statement considers whether a business may claim an income tax deduction for costs it incurs due to the COVID-19 pandemic, and helps businesses decide whether these costs are deductible.
This statement applies to a business that is being carried on. For businesses that have ceased to operate (either temporarily or permanently) due to COVID-19, see IS 21/04.
IS 21/04: Income tax and GST - deductions for businesses disrupted by the COVID-19 pandemic
Income Tax Act 2007, ss CC 1B, DA 1, DA 2, DB 20C, DB 62, DC 1, subpart EE
Auckland Gas Co Ltd v CIR (2000) 19 NZTC 15,702 (PC)
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Case L68 (1989) 11 NZTC 1,398 (TRA)
Case T43 (1998) 18 NZTC 8,287 (TRA)
Christchurch Press Co Ltd v CIR (1993) 15 NZTC 10,206 (HC)
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CIR v Trustpower [2015] 3 NZLR 658 (CA)
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Commissioner of Taxation (NSW) v Ash (1938) 5 ATD 76 (HCA)
Commissioner of Taxes v Nchanga Consolidated Copper Mines [1964] AC 948 (PC)
Cox v CIR (1992) 14 NZTC 9,164 (HC)
Eggers v CIR (1988) 10 NZTC 5,153 (CA)
Europa Oil (NZ) Ltd (No 2) v CIR (1974) 1 NZTC 61,169 (CA)
Federal Coke Company Ltd v FCT 77 ATC 4255 (FCA)
FCT v Wells 71 ATC 4,188 (HCA)
Fletcher v FCT 91 ATC 4,950 (HCA)
Fullers Bay of Islands Ltd v CIR (2006) 22 NZTC 19,716 (CA)
Hallstroms Pty Ltd v FCT (1946) 72 CLR 634 (HCA)
John Fairfax and Sons Pty Ltd v FCT (1959) 101 CLR 30 (HCA)
Magna Alloys & Research Pty Ltd v FCT 80 ATC 4,542 (FCAFC)
Poverty Bay Electric Power Board v CIR (1999) 19 NZTC 15,001 (CA)
Putnin v FCT 91 ATC 4,097 (FCAFC)
Schokker v FCT 99 ATC 4,504 (FCAFC)
Sun Newspapers Ltd v FCT (1938) 61 CLR 337 (HCA)
Trustpower v CIR [2017] 1 NZLR 155 (SC)