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IC 6: Common ownership for period
or “Companies must share ownership for a set time to use each other's tax losses”
You could also call this:

“Company must be incorporated or operate in New Zealand”

For the time period called the commonality period, Company A must meet one of two conditions. You need to either be incorporated in New Zealand or be running a business in New Zealand through a fixed establishment in the country.

There’s an exception to this rule. Section IZ 7(4) overrides this section. That part of the law deals with grouping tax losses for tax years before 1981-82 and between 1981-82 and 1991-92.

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Next up: IC 8: Limitations on amounts used

or “Limits on how much tax loss one company can use to help another”
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Part I Treatment of tax losses
Grouping tax losses

IC 7Place of incorporation or carrying on business

  1. Company A, for the commonality period, must be either—

  2. incorporated in New Zealand; or
    1. carrying on a business in New Zealand through a fixed establishment in New Zealand.

      1. Repealed

      2. Section IZ 7(4) (Grouping tax losses for tax years before 1981–82 and between 1981–82 and 1991–92) overrides this section.

      Compare
      Notes
      • Section IC 7 heading: replaced (with effect on 15 March 2017), on , by section 86(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section IC 7(2) heading: repealed (with effect on 15 March 2017), on , pursuant to section 86(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section IC 7(2): repealed (with effect on 15 March 2017), on , by section 86(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section IC 7 list of defined terms double tax agreement: repealed (with effect on 15 March 2017), on , by section 86(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section IC 7 list of defined terms income tax: repealed (with effect on 15 March 2017), on , by section 86(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section IC 7 list of defined terms resident in New Zealand: repealed (with effect on 15 March 2017), on , by section 86(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).