Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Treatment of tax losses - Attributed controlled foreign company net losses and foreign investment fund net losses

IQ 1B: Losses carried forward to tax year

You could also call this:

“How you can carry forward CFC and FIF net losses to future tax years”

If you have an attributed CFC net loss or a FIF net loss, or both, you can carry it forward to a future tax year. This works in a similar way to carrying forward tax losses for companies. The rules for carrying forward these losses are found in [Section IA 5] and [subpart IB] of the Income Tax Act. These sections explain how to treat the net loss as if it were a tax loss component.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2720866.

Topics:
Money and consumer rights > Taxes
Previous

IQ 1: General treatment, or

“How to carry forward and use tax losses from CFCs and FIFs”

Next

IQ 2: Ring-fencing cap on attributed CFC net losses, or

“Limits on using losses from foreign companies to reduce your income”

Part I Treatment of tax losses
Attributed controlled foreign company net losses and foreign investment fund net losses

IQ 1BLosses carried forward to tax year

  1. An attributed CFC net loss or a FIF net loss or both may be carried forward to a tax year. Section IA 5 and subpart IB (which relate to the carrying forward of tax losses for companies) apply for the purposes of this subpart as if the net loss were a tax loss component.

Notes
  • Section IQ 1B: inserted (with effect on 1 April 2008), on , by section 61(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
  • Section IQ 1B: amended (with effect on 1 April 2020), on , by section 112(1) (and see section 112(2) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).