New Zealand Inland Revenue has published a draft Interpretation Statement that provides guidance on how the main aspects of the new business continuity test apply for losses carry-forward. The business continuity test was introduced as part of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 enacted in March and may enable a company to carry forward tax losses despite a breach in ownership continuity if certain requirements are satisfied.
The …