The October 2026 Tax Information Bulletin highlights tax developments that may be relevant to New Zealand businesses, particularly those dealing with property transactions, company restructures and historical employment payments.

This update covers three technical decision summaries involving GST liability after deregistration, the use of carried-forward company tax losses following a restructure, and the treatment of remedial holiday-pay payments.

Important: The outcomes discussed below relate to specific facts and arrangements. They should not be treated as automatic rules for every taxpayer or business.

1. GST liability after deregistration: TDS 26/15

The first decision summary concerns GST registration and deregistration in the context of property sales. It considers a taxpayer involved in developing and selling residential lots.

In the circumstances considered, retrospective GST deregistration was accepted because there was no taxable activity. However, GST remained payable on one sale because the documentation represented GST as being charged. Another sale, which was represented as zero-rated, had a different outcome.

What does this mean for New Zealand businesses?

GST deregistration does not necessarily resolve every issue connected with earlier transactions. The facts, contracts and representations made in sale documentation can influence the GST position.

Businesses dealing with property or significant asset sales should consider the following:

• Whether the business was carrying on a taxable activity.
• Whether sale agreements clearly document the intended GST treatment.
• Whether GST has been represented as being charged.
• Whether any zero-rating treatment meets the relevant legal requirements.
• Whether GST returns and supporting records are consistent with the transaction documents.

Reviewing these matters before completing a transaction or applying for deregistration may help identify potential tax issues.

Official source: Read TDS 26/15 – GST liability on deregistration.

2. Company restructures and carried-forward tax losses: TDS 26/17

The second topic in the October 2026 Tax Information Bulletin concerns a private ruling on a group restructure involving the transfer of assets and the continued use of carried-forward company tax losses.

In the specific arrangement examined, the ruling concluded that the company’s losses could continue to be used if shareholder-continuity and other statutory conditions were satisfied. The general anti-avoidance provision was not considered to apply to that particular arrangement.

What should companies review before restructuring?

Carried-forward tax losses may have financial value, but their continued availability depends on the relevant rules and the facts of the restructure. Companies should not assume that losses will automatically remain available after a change in ownership or group structure.

Before proceeding with a restructure, consider:

• Whether the applicable shareholder-continuity requirements are met.
• How the proposed changes affect company ownership and control.
• Whether other statutory conditions or restrictions apply.
• Whether the commercial reasons for the restructure are properly documented.
• Whether tax consequences have been assessed before the transaction is implemented.

Early planning can help a business understand the potential implications of a proposed transaction. The ruling described in the bulletin should not be treated as a guarantee that another restructure will receive the same treatment.

Official source: Read TDS 26/17 – Restructure and use of losses.

3. Backdated holiday pay and tax treatment: TDS 26/13

The third decision summary considers remedial holiday-pay payments made years after employment had ended. It addresses the tax treatment of a historical payment, including PAYE and terminal-tax considerations.

In the circumstances examined, the payment was allocated to the year it was received, and the PAYE and terminal-tax treatment was accepted. This was a fact-specific outcome and should not be interpreted as a universal rule for every historical holiday-pay payment.

Practical considerations for employers

Employers reviewing historical holiday-pay or payroll issues should consider:

• Keeping records showing the period to which the original payment relates.
• Recording when a remedial payment was calculated and paid.
• Reviewing the PAYE treatment and relevant payroll records.
• Assessing whether a correction, disclosure or other action may be required.
• Seeking advice where payments relate to former employees or multiple tax years.

Historical payroll corrections can involve both employment-law and tax considerations. Employers should review the underlying payment and reporting treatment before finalising a correction.

Official source: Read TDS 26/13 – Remedial holiday-pay payments.

What businesses should do after the October 2026 Tax Information Bulletin

The three decision summaries highlight a common theme: tax outcomes depend on the relevant facts, applicable legislation and quality of supporting documentation.

1. Review GST records and contracts

Check that invoices, sale agreements and GST returns reflect the intended treatment of transactions. Pay particular attention to property sales, deregistration and transactions described as zero-rated.

2. Assess tax consequences before restructuring

Review carried-forward losses and ownership changes before transferring assets or reorganising a group of companies. Confirm the relevant requirements rather than assuming losses will remain available.

3. Check historical payroll adjustments

If your business is correcting holiday pay or making payments relating to earlier employment periods, review payment records, PAYE treatment and tax-year implications.

4. Maintain an audit trail

Keep contracts, calculations, board decisions, payroll records and relevant professional advice. Clear documentation helps explain the decisions made and supports your business’s tax position.

5. Seek advice where the facts are complex

Where a transaction involves substantial GST, carried-forward losses or historical payroll payments, consider seeking advice before filing a return or implementing a change.

People Also Ask: October 2026 Tax Information Bulletin

How DFK Orb360 can support your business

Understanding tax developments is one part of managing a business effectively. The next step is determining whether a particular issue affects your transactions, reporting obligations or future plans.

DFK Orb360 works with New Zealand businesses on business advisory and accounting-related matters. If your business is reviewing a property transaction, considering a restructure or resolving a historical payroll issue, contact the team to discuss your requirements and confirm the appropriate next steps.

Official sources and further reading

• Inland Revenue: October 2026 Tax Information Bulletin
• TDS 26/15: GST liability on deregistration
• TDS 26/17: Restructure and use of losses
• TDS 26/13: Remedial holiday-pay payments
• DFK Orb360: Business Advisory
• Contact DFK Orb360