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Inland Revenue

Tax Policy

Last updated 20 May 2010
Closing date 5 July 2010

Status Complete

LAQCs and QCs: implementation of flow-through tax treatment

An officials' issues paper, Qualifying companies: implementation of flow-through tax treatment, sought comment on the implementation of changes to the rules for shareholders in LAQCs and QCs.

Budget 2010 announced proposed changes to tighten the rules around loss attributing qualifying companies and qualifying companies. The proposed changes will make LAQCs and QCs flow-through entities for tax purposes, similar to limited partnerships, and are intended to provide greater integrity in the tax system by removing opportunities to gain advantages through tax planning.

Submissions closed on 5 July 2010.