For anyone looking at taking investing seriously, it is always important to make sure you have the clearest understanding of all the options available to you. At GRA, we believe in providing you with the most complete and accurate assessment of your available options, including the look-through company (LTC) regime, making us your premier LTC advisory Auckland. Our friendly team of experts are highly trained in the LTC regime and are here to provide you with the insight to determine whether an LTC would be the best option for your particular structure. Let our team of experts be your LTC advisory Auckland.
The LTC regime came into being on 1 April 2011, as a result of the Government's announcement in May 2010 Budget, where an announcement was made regarding changes to the loss attributing qualifying company (LAQC) regime. These changes came about due to concerns:
- Profits were being trapped within a company and being taxed at the company tax rate, which was either 33% or 30% at the time, while losses were being claimed personally at personal tax rates after being attributed to shareholders, at rates as high historically as 39%.
- Shareholders of an LAQC had no cap on the amount of losses that they were able to claim.
- It was possible for LAQC shareholders to take advantage of any tax losses that might be funded through debt, while not ensuring any corresponding remission income, if the relevant debt was to be written off after the LAQC election was revoked.
- The complex and rigid nature of the LAQC election rules also warranted concerns.
It was these factors that saw the birth of the LTC regime. As your leaders in LTC advisory Auckland, we made it our mission to invest the time and resources required to fully understand the new legislation and all of its implications. While the LTC rules can be relatively complex, we believe that it can provide a useful tax structure for Kiwis because it is suitable for a number for uses, such as holding loss-making property investments, the carrying out of any joint venture business activities between two to three business partners, or even cross border investment where an ordinary company structure might generate two layers of taxation (one at shareholder level and one at company level etc).
So if you're looking to invest in property, and you think an LTC could be the ideal structure for you, give GRA a call so you gain the expertise of the leading LTC advisory Auckland.
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