Loss carry-forward – continuity of business activities
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.
Tax Information Bulletin Vol 34 No 11 - December 2022
Income Tax Act 2007, ss GB 3BA, GB 3BAB, GB 3BAC, subparts IA (s IA 5), IB (ss IB 1 to IB 5), s IP 3B, s YA 1 (“business, “land”)
Legislation Act 2019, s 10
Income and Corporation Taxes Act 1970 (UK), s 483(1)(a)
AAA Developments (Ormiston) Limited v Commissioner of Inland Revenue (2015) 27 NZTC 22-026 (HC)
British Association of Leisure Parks, Piers & Attractions Ltd v Revenue and Customs Commissioners [2011] TC 01504 (UKFTT)
Case F31 (1983) 6 NZTC 59,712 (TRA)
Case G8 (1985) 7 NZTC 1,021 (TRA)
Case J2 (1987) 9 NZTC 1,004 (TRA)
Case L89 (1989) 11 NZTC 1,508 (TRA)
Case U29 (2000) 19 NZTC 9,273 (TRA)
CIR v Mitchell (1986) 8 NZTC 5,181 (HC)
Commerce Commission v Fonterra Co-operative Group Ltd [2007] NZSC 36
Grieve v CIR [1984] 1 NZLR 101 (CA)
McGrath v CIR (1987) 9 NZTC 6,074 (HC)
Slater v CIR (1996) 17 NZTC 12,453 (HC)
Willis (H.M. Inspector of Taxes) v Peeters Picture Frames Limited [1983] STC 453 (NICA)