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Abstract Recently, a novel four-dimensional Gauss–Bonnet theory has been suggested as a limiting case of the original D-dimensional theory with singular Gauss–Bonnet coupling constant $$\alpha \rightarrow \alpha /(D-4)$$ α → α / ( D - 4 ) . The theory is proposed at the level of field equations. Here we analyse this theory at the level of action. We find that the on-shell action and surface terms split into parts, one of which does not scale like $$(D-4)$$ ( D - 4 ) . The limiting $$D\rightarrow 4$$ D → 4 procedure, therefore, gives unphysical divergences in the on-shell action and surface terms in four dimensions. We further highlight various issues related to the computation of counterterms in this theory.