1.25 CPD hours
On Demand EventComplete online in your own time (Self-paced)
- $180.00 excl. GST
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.
- 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
Junior, intermediate and senior accountants, and lawyers who advise clients on structuring issues.
ORIGINAL BROADCAST DATE
4 May 2017
Stephen Tomlinson, Partner, Tomlinson Law