1.25 CPD hours

  • On Demand Event
    Complete online in your own time (Self-paced)
    • $180.00 excl. GST

Description

Recent tax reforms affect both existing and new look-through companies. Changes to the eligibility criteria mean that a number of companies have ceased to be look-through companies from 1 April 2017. Accountants and lawyers will need to review their clients’ structures, including the trust deed of any trust that holds shares in a company, to check that those companies are still eligible to be look-through companies. Unexpected tax liabilities may arise for those companies that no longer meet the eligibility criteria.

This webinar considers a number of practical issues that arise with look-through companies, with a particular focus on recent tax reforms. These reforms include changes to the look-through company eligibility requirements, the calculation of income on conversion of an ordinary company to a look-through company, the tax treatment of remission of debt, and the scope of the loss limitation rule.

Other topics covered will include the use of look-through companies for cross-border investment, who can hold shares in a look-through company, how payments made by a look-through company to a “working owner” are taxed, how to deal with distributions and overdrawn current accounts, and the tax consequences of transferring shares in a look-through company.

LEARNING OUTCOMES

You will:

  • Learn about recent changes to the look-through company eligibility criteria, how this affects existing structures, and what tax implications arise where a company ceases to be a look-through company
  • Learn about the recent changes to how income is calculated on conversion of an ordinary company to a look-through company
  • Understand how recent legislative changes to prevent debt remission income arising apply to look-through companies
  • Learn about the recent changes to the loss limitation rule and restricted deductions
  • Know when a look-through company can be used for cross border investment and how the NZ/Australia double tax agreement facilitates the use of look-through companies in a Trans-Tasman context
  • Understand when an income tax liability arises on the disposal of interests in a look-through company
  • Know the rules concerning working owners, shareholder salaries and fringe benefits tax
  • Understand how to deal with distributions and overdrawn current accounts

SUITED TO

Junior, intermediate and senior accountants, and lawyers who advise clients on structuring issues.

ORIGINAL BROADCAST DATE

4 May 2017

PRESENTER

Stephen Tomlinson, Partner, Tomlinson Law