A Loss Attributing Qualifying Company (LAQC) is a company which, by New Zealand law, must pass on any losses to its shareholders. The shareholders can then offset these losses against their personal income.
Legislation passed in December 2010 made changes to the rules for qualifying companies (QCs) and loss attributing qualifying companies (LAQCs). LAQCs aren't 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 become QCs (without the ability to attribute losses) at the start of the income year that begins on or after 1 April 2011. LAQCs also may elect either to remain a QC or can transition into a Look-through company (LTC) at no tax cost in certain circumstances or can also transition into another tax entity, such as a partnership, limited partnership or sole tradership with no tax cost
Famous quotes containing the words loss, attributing and/or company:
“Nothing that grieves us can be called little: by the eternal laws of proportion a child’s loss of a doll and a king’s loss of a crown are events of the same size.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“One will seldom go wrong in attributing extreme actions to vanity, moderate ones to habit, and petty ones to fear.”
—Friedrich Nietzsche (1844–1900)
“I have noticed that doctors who fail in the practice of medicine have a tendency to seek one another’s company and aid in consultation. A doctor who cannot take out your appendix properly will recommend you to a doctor who will be unable to remove your tonsils with success.”
—Ernest Hemingway (1899–1961)