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IZ 7: Grouping tax losses for tax years before 1981–82 and between 1981–82 and 1991–92
or “Rules for sharing tax losses between companies from 1981 to 1992”
You could also call this:

“Rules for sharing company tax losses from before March 2017”

When you want to use a company’s tax loss, there are some rules you need to follow. These rules apply if the time period for sharing losses started before 15 March 2017 and the loss happened after the 1990-91 tax year.

For the part of the time period before 15 March 2017, the company with the loss (let’s call it Company A) must meet some extra conditions. These are in addition to the usual rules about where a company is based or does business.

Company A must not be a company that lives in New Zealand but is treated as living somewhere else because of a tax agreement with another country. Also, Company A must not have to pay tax in another country because it’s based there or set up there.

These rules help decide if Company A can share its tax loss with another company (Company B). You can find more details about this in section IC 5(1)(b) and section IC 7(1) of the law.

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Next up: IZ 8: Election to use net loss for 2019–20 or 2020–21 year as tax loss in preceding year

or “Choose to use a loss from 2019-20 or 2020-21 as a tax loss in the previous year”
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Part I Treatment of tax losses
Terminating provisions

IZ 7BGrouping tax losses for commonality periods starting before 15 March 2017 for tax years after 1990–91

  1. For the purposes of section IC 5(1)(b) (Company B using company A’s tax loss), if the commonality period started before 15 March 2017 and company A’s tax loss component arose in a tax year after the 1990–91 tax year, in addition to meeting the requirements of section IC 7(1) (Place of incorporation or carrying on business), company A, for the part of the commonality period that precedes 15 March 2017, must not be a company resident in New Zealand that is—

  2. treated under a double tax agreement, and for the purposes of the agreement, as not resident in New Zealand; or
    1. liable by the law of another country or territory to income tax in that country or territory through domicile, residence, or place of incorporation.

      Notes
      • Section IZ 7B: inserted (with effect on 15 March 2017), on , by section 87 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).