New Zealand · Consultation
New Zealand consults on carrying forward ownership-breach-year losses
On 16 October 2026, New Zealand’s Inland Revenue opened consultation on draft guidance proposing that an ownership-continuity breach need not prevent carrying forward losses arising in that same income year.
- Official document:
- PUB00535 exposure draft; Income Tax Act 2007, section IB 3(2), subpart IB
- Development date:
- 2026-10-16
Compare the loss year with the later tax year
PUB00535 addresses the words ‘earlier income year’ in section IB 3(2) of the Income Tax Act 2007. Inland Revenue proposes comparing the year when the loss arose with the later tax year to which it is carried forward, rather than with the ownership-breach year. On that reading, a loss arising in the breach year can still be an earlier-year loss for carryforward purposes.[2]
The draft’s answer remains conditional on satisfying section IB 3. It does not give every acquired company automatic access to its losses. Groups should distinguish this proposed interpretation of the year comparison from the separate assessment of business continuity and other eligibility restrictions.[2]
Consultation, not final guidance
This is a proposed interpretation of existing legislation, not a statutory amendment or final ruling. The draft expressly says it cannot be relied on while in draft form. Comments close on 27 November 2026. This brief reports that consultation, not a complete assessment of any company’s loss entitlement.[1][2]
Official sources
- [1] PUB00535 — continuity of business activities and ownership-breach-year losses
Inland Revenue · Document date: 2026-10-16
Full substantive announcement read: lines54–85 official opening16October/closing27November/status; lines86–90 question, affected companies and linked exposure draft. This is consultation on an interpretation, not enacted relief.
- [2] PUB00535 exposure draft — losses in the ownership-continuity breach year
Inland Revenue · Document date: 2026-10-16
Complete7physicalpages read: answerphysicalp2; paras6–11physicalpp3–4 comparator; non-reliancewarningphysicalp5; statutoryappendixphysicalpp6–7, IA3/IA5/IB1/IB3(1)–(2). No full consolidatedAct/business-eligibility audit claimed; direct latestAct body403 remains qualified.