Hey John, I sought some guidance from the IRD on your point – this is what they have said back to me, and they will also post this onto their website for guidance with an example: “We have determined that it is compensation in terms of section CG 5B of Income Tax Act which clarifies common law principle that business taxpayers return income on an accrual basis not on a cash received basis. We have taken an easy to follow approach for the self-employed that allows them to apportion it over the 12 week period. So subsidy was received on 26 March then 6/84ths of payment would be returned in 2020 and balance in 2021. We have prepared an example of this for website which will hopefully be posted soon.”

I hope that is more helpful. Andy