Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Expenditure specific to certain entities

DZ 20B: Expenditure incurred while income-earning activity interrupted by North Island flooding event

You could also call this:

“Tax deductions for business costs during North Island flood-related interruptions”

You might be able to get a tax deduction if you had to stop your business because of the North Island floods. This applies if you had a business in New Zealand before the floods happened. If the floods made you stop your business for a while, and you had to spend money on things related to your business during this time, you might be able to claim this money back on your taxes.

For this to work, you need to have started your business again before the 2028-29 tax year. The money you spent while your business was stopped needs to be something you would normally be able to claim if your business was running as usual.

If all of this applies to you, you can claim this money as a deduction in the year you start your business again. This is allowed under the tax rules, but other general limits on what you can claim still apply.

This rule is only for tax years before 2028-29, so you can’t use it after that.

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 It might be out of date or be missing some parts.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=LMS952809.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
Previous

DV 20: Partners, or

“Rules for partners to claim deductions in partnerships”

Next

DV 21: Losses for QCs entering partnership regime, or

“How partners can claim deductions for old qualifying company losses”

Part D Deductions
Expenditure specific to certain entities

DZ 20BExpenditure incurred while income-earning activity interrupted by North Island flooding event

  1. This section applies for a person and an income year (the current year) before the 2028–29 income year when—

  2. the person has an income-earning activity in New Zealand immediately before a North Island flooding event; and
    1. the activity is interrupted for a period (the period of interruption) as a result of the North Island flooding event; and
      1. in the current year, during the period of interruption, the person incurs expenditure or loss (the interruption expenditure) in meeting an obligation relating to the income-earning activity; and
        1. the interruption expenditure does not meet the requirements of the general permission for the person and the income-earning activity but would do so but for the interruption; and
          1. the person resumes the income-earning activity in an income year (the resumption year) before the 2028–29 income year.

            1. The person is allowed a deduction for the interruption expenditure.

            2. The deduction is allocated to the resumption year.

            3. This section supplements the general permission. The general limitations still apply.

            Notes
            • Section DZ 20B: inserted (with effect on 1 April 2022), on , by section 52(1) (and see section 52(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).