A Loss Attributing Qualifying Company (LAQC) was a type of company which, by

New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...

law, passed on any losses to its

shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal own ...

s. The shareholders could then offset these losses against their personal income for tax purposes. Following the

2010 New Zealand budget The New Zealand budget for fiscal year 2010-2011 was presented to the New Zealand House of Representatives by Finance Minister Bill English on 20 May 2010. This was the second budget Bill English has presented as Minister of Finance. Outline ...

, legislation passed was December 2010 that made changes to the rules for qualifying companies (QCs) and loss attributing qualifying companies (LAQCs). LAQCs were not able to attribute losses to shareholders for income years starting on or after 1 April 2011 and there are no new QC or LAQC elections. Existing LAQCs automatically became QCs (without the ability to attribute losses) at the start of the income year starting 1 April 2011. They may elect either to remain a QC or can transition into a

Look-through company A Look-Through Company (LTC) is a kind of tax structure for New Zealand companies with limited liability, which allows the company in question to transfer its income and expenditure to its shareholders directly. The LTC has replaced the previously ...

(LTC) at no tax cost in certain circumstances or can also transition into another tax entity, such as a

partnership A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments o ...

limited partnership A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited ...

or sole tradership with no tax cost.

References

External links

New Zealand Companies Office
Types of business entity New Zealand business law {{NewZealand-law-stub