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Carrying forward company tax losses from the year ownership changes

Inland Revenue seeks comments on draft guidance saying a company may carry forward tax losses arising in the year it breaches ownership continuity, if the business continuity requirements are met.

Closing date
27 November 2026

Closes in 40 days

Added to Civics
16 October 2026
Source category
Public service
Last checked
18 October 2026

Plain-English summary

Unpublished review draft. Inland Revenue is consulting on its interpretation of the existing business continuity rules. The paper's answer remains conditional on the statutory requirements; it does not establish that every company with an ownership change can carry forward its losses.

Why it matters

The draft addresses uncertainty about losses incurred in the same income year as an ownership continuity breach, rather than only losses from earlier years.

Clear guidance could help companies and advisers understand Inland Revenue's interpretation when planning ownership changes or assessing available losses.

Who may care

  • Companies raising capital, changing shareholders or restructuring while carrying tax losses
  • Tax professionals and business organisations concerned with the continuity rules

How to make a submission

  1. Read the draft question we've been asked document linked from the official consultation page.
  2. Email comments to public.consultation@ird.govt.nz by 27 November 2026, quoting PUB00535.
  3. Use the page's Email Feedback link to request a Word copy if needed. No closing time is stated on the page or cover.

Disclaimer

Civics.nz is an independent plain-English guide and is not an official government website. Always check the official source before making a submission.