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New Zealand: Tax relief measures focused on enhancing cash-flow (COVID-19)

New Zealand: Tax relief measures, enhancing cash-flow

The Minister of Finance on 14 April 2020 announced three tax measures that are focused on providing and enabling cash-flow and freeing Inland Revenue’s ability to respond to the consequences of the coronavirus (COVID-19) pandemic.


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Three tax measures include:

  • A tax loss “carry back” rule to allow refunds of tax paid in a prior year—there would be a temporary rule for tax losses in the 2020 and 2021 tax years and a permanent rule for future years.
  • A same or similar “business test” to allow tax losses to be carried forward—this would be intended to help companies to raise capital.
  • A temporary rule to give Inland Revenue flexibility to “relax” time frames and processes without the need for Cabinet approval.

These measures would apply to all businesses (not just small business).

Read an April 2020 report prepared by the KPMG member firm in New Zealand

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