Income Tax Act 2007

Avoidance and non-market transactions - Terminating provisions

GZ 4: Disposals of trading stock to donee organisations or public authorities

You could also call this:

"Selling trading stock to charities or government without following usual tax rules"

You do not have to follow the rules in Section GC 1 when you dispose of trading stock to a donee organisation or a public authority. This applies when you dispose of the stock between 17 March 2020 and 31 March 2024. It also applies if an Order in Council is made under section 225ABA of the Tax Administration Act 1994 to specify a different period.

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 It might be out of date or be missing some parts.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=LMS483809.

This page was last updated on 29 January 2026 — View changes

Topics:

Money and consumer rights > TaxesBusiness > Industry rules

GZ 3: Donations of trading stock for relief of Canterbury earthquakes, or

"No tax on stock donations for Canterbury earthquake relief"

GZ 5: Disposals of trading stock to non-associates, or

"Selling trading stock to someone you don't know for little or no money"

Part GAvoidance and non-market transactions
Terminating provisions

GZ 4Disposals of trading stock to donee organisations or public authorities

Section GC 1 (Disposals of trading stock at below market value) does not apply to a disposal of trading stock by a person—
to a donee organisation or a public authority; and
in—
1. the period that begins on 17 March 2020 and ends on 31 March 2024; or
2. a period specified by an Order in Council made under section 225ABA of the Tax Administration Act 1994.

Notes

Section GZ 4: inserted (with effect on 17 March 2020), on 30 March 2021, by section 84 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section GZ 4(b)(i): amended, on 31 March 2023, by clause 4 of the Tax Administration (Extension of Period of Relief for Certain Disposals of Trading Stock) Order 2023 (SL 2023/16).
Section GZ 4(b)(i): amended, on 16 March 2022, by clause 3 of the Tax Administration (Extension of Period of Relief for Certain Disposals of Trading Stock) Order 2022 (SL 2022/55).