The curtain has fallen on LAQC’s (Loss Attributing Qualifying Companies)
The curtain has fallen on LAQC’s (Loss Attributing Qualifying Companies)
Whilst updating my e-Book “A BLUEPRINT to Residential Property Investing in New Zealand” I contacted Scott Mason a Principal of Taxation at accounting firm WHK Otago to ask if he would share his views. The following excerpt is what he had to say: The curtain has (mostly) fallen on the widely-used Loss Attributing Qualifying Company structure which was repealed from the end of the 2011 tax year (March 31, 2011, for most LAQCs). This combined with the grandfathering of the QC regime and introduction of Look Through Companies (LTCs) from April 1, 2011, means that shareholders in LAQCs/QCs have to make some choices soon. Although this outcome has been inevitable since Government announcements in the May 20 Budget last year, the legislation was only passed on December 20, 2010, so the real question is whether the approximately 60,000 QCs/LAQCs in New Zealand are ready to respond to this change. Certainly, Chartered Accountants around New Zealand have been learning about the options available, and are talking to their clients about such. These options range from doing nothing (and become/stay a QC), electing to become a LTC, or transitioning to a partnership/limited partnership/sole tradership structure........ | 
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